ARYA GROUP OF COLLEGES

By:
Er. Naveen Kumar Tiwari
Arya Group Of Colleges
INTRODUCTION OF SUBJECT
Word quality can be defined either as;
•Fitness for use or purpose.
•To do a right thing at first time.
QUALITY •To do a right thing at the right-time.
•Find and know, what consumer wants?
•Features that meet consumer needs and give
customer satisfaction.
•Freedom from deficiencies or defects.
•Conformance to standards.
•Value or worthiness for money, etc.

the process of dealing with or controlling things

or people.
Management is a process of planning, decision
MANAGEMENT making, organizing, leading, motivation and
controlling the human resources, financial,
physical, and information resources of an
organization to reach its goals efficiently and
effectively.
 Quality management is the act of overseeing all
activities and tasks that must be accomplished to
maintain a desired level of excellence. This includes
QUALITY the determination of a quality policy, creating and
MANAGEMENT implementing quality planning and assurance,
and quality control and quality improvement.

A quality management system (QMS) is a

collection of business processes focused on
consistently meeting customer requirements and
enhancing their satisfaction. ... It is expressed as the
organizational goals and aspirations, policies,
processes, documented information and resources
needed to implement and maintain it.
Quality management consists of four key components, which include the following:

Quality Planning – The process of identifying the quality standards relevant to the
project and deciding how to meet them.

Quality Improvement – The purposeful change of a process to improve the confidence

or reliability of the outcome.

Quality Control – The continuing effort to uphold a process’s integrity and reliability in
achieving an outcome.

Quality Assurance – The systematic or planned actions necessary to offer sufficient

reliability so that a particular service or product will meet the specified requirements.
 Customer focus:
 The primary focus of quality management is to meet customer requirements and to
strive to exceed customer expectations.

 Leadership:-
 Leaders at all levels establish unity of purpose and direction and create conditions in
which people are engaged in achieving the organization’s quality objectives.
Leadership has to take up the necessary changes required for quality improvement and
encourage a sense of quality throughout organisation.

 Engagement of people:-
 Competent, empowered and engaged people at all levels throughout the organization
are essential to enhance its capability to create and deliver value.

 Process approach
 Consistent and predictable results are achieved more effectively and efficiently when
activities are understood and managed as interrelated processes that function as a
coherent system.
 Improvement:-
 Successful organizations have an ongoing focus on improvement.

 Evidence based decision making

 Decisions based on the analysis and evaluation of data and information are more
likely to produce desired results.

 Relationship management:-
 Further information: Relationship management
 For sustained success, an organization manages its relationships with interested
parties, such as suppliers, retailers.
 Rationale
•The first is to introduce the students to the evolution and history of quality
management .

•The aim of quality management is to ensure that all the organization’s stakeholders work
together to improve the company’s processes, products, services, and culture to achieve
the long-term success that stems from customer satisfaction.

•The process of quality management involves a collection of guidelines that are developed
by a team to ensure that the products and services that they produce are of the right
standards or fit for a specified purpose.

• To realize the importance of significance of quality.

•Quality management is focused not only on product and service quality, but also on the
means to achieve it
Quality management is a recent phenomenon but important for an organization.
Civilizations that supported the arts and crafts allowed clients to choose goods meeting
higher quality standards rather than normal goods. In societies where arts and crafts are
the responsibility of master craftsmen or artists, these masters would lead their studios and
train and supervise others. The importance of craftsmen diminished as mass production
and repetitive work practices were instituted. The aim was to produce large numbers of the
same goods. The first proponent in the US for this approach was Eli Whitney who
proposed (interchangeable) parts manufacture for muskets, hence producing the identical
components and creating a musket assembly line. The next step forward was promoted by
several people including Frederick Winslow Taylor, a mechanical engineer who sought to
improve industrial efficiency. He is sometimes called "the father of scientific
management." He was one of the intellectual leaders of the Efficiency Movement and
part of his approach laid a further foundation for quality management, including aspects
like standardization and adopting improved practices. Henry Ford was also important in
bringing process and quality management practices into operation in his assembly lines. In
Germany, Karl Benz, often called the inventor of the motor car, was pursuing similar
assembly and production practices, although real mass production was properly initiated
in Volkswagen after World War II. From this period onwards, North American companies
focused predominantly upon production against lower cost with increased efficiency.
Walter A. Shewhart made a major step in the evolution towards quality management by
creating a method for quality control for production, using statistical methods, first
proposed in 1924. This became the foundation for his ongoing work on statistical quality
control. W. Edwards Deming later applied statistical process control methods in the
United States during World War II, thereby successfully improving quality in the
manufacture of munitions and other strategically important products.
Quality leadership from a national perspective has changed over the past decades. After
the second world war, Japan decided to make quality improvement a national imperative
as part of rebuilding their economy, and sought the help of Shewhart, Deming and Juran,
amongst others. W. Edwards Deming championed Shewhart's ideas in Japan from 1950
onwards. He is probably best known for his management philosophy establishing
quality, productivity, and competitive position. He has formulated 14 points of attention
for managers, which are a high level abstraction of many of his deep insights. They
should be interpreted by learning and understanding the deeper insights. These 14
points include key concepts such as:
Break down barriers between departments
Management should learn their responsibilities, and take on leadership
Supervision should be to help people and machines and gadgets to do a better job
Improve constantly and forever the system of production and service
Institute a vigorous program of education and self-improvement
In the 1950s and 1960s, Japanese goods were synonymous with cheapness and low quality,
but over time their quality initiatives began to be successful, with Japan achieving high
levels of quality in products from the 1970s onward. For example, Japanese cars regularly
top the J.D. Power customer satisfaction ratings. In the 1980s Deming was asked by Ford
Motor Company to start a quality initiative after they realized that they were falling behind
Japanese manufacturers. A number of highly successful quality initiatives have been
invented by the Japanese (see for example on this pages: Genichi Taguchi, QFD, Toyota
Production System). Many of the methods not only provide techniques but also have
associated quality culture (i.e. people factors). These methods are now adopted by the same
western countries that decades earlier derided Japanese methods.
Customers recognize that quality is an important attribute in products and services.
Suppliers recognize that quality can be an important differentiator between their own
offerings and those of competitors (quality differentiation is also called the quality gap). In
the past two decades this quality gap has been greatly reduced between competitive
products and services. This is partly due to the contracting (also called outsourcing) of
manufacture to countries like China and India, as well internationalization of trade and
competition. These countries, among many others, have raised their own standards of
quality in order to meet international standards and customer demands. The ISO
9000 series of standards are probably the best known International standards for quality
management.
Customer satisfaction is the backbone of Quality Management. Setting up a million dollar
company without taking care of needs of customer will ultimately decrease its revenue.
There are many books available on quality management. Some themes have become more
significant including quality culture, the importance of knowledge management, and the
role of leadership in promoting and achieving high quality. Disciplines like systems
thinking are bringing more holistic approaches to quality so that people, process and
products are considered together rather than independent factors in quality management.
The influence of quality thinking has spread to non-traditional applications outside of
walls of manufacturing, extending into service sectors and into areas such
as sales, marketing and customer service
Product Quality

“Product quality means to incorporate features that have a capacity to meet consumer
needs (wants) and gives customer satisfaction by improving products (goods) and
making them free from any deficiencies or defects.”

Meaning of Product Quality”:

Product quality mainly depends on important factors like:

(i) The type of raw materials used for making a product.

(ii) How well are various production-technologies implemented?
(iii) Skill and experience of manpower that is involved in the production process.
(iv) Availability of production-related overheads like power and water supply, transport,
etc.
Product quality has two main characteristics viz; measured and attributes.
•Measured characteristics
Measured characteristics include features like shape, size, color, strength, appearance,
height, weight, thickness, diameter, volume, fuel consumption, etc. of a product.
•Attributes characteristics
Attributes characteristics checks and controls defective-pieces per batch, defects per
item, number of mistakes per page, cracks in crockery, double-threading in textile
material, discoloring in garments, etc.
Based on this classification, we can divide products into good and bad.
So, product quality refers to the total of the goodness of a product.
(i) Quality of design: The product must be designed as per the consumers’ needs
and high-quality standards.
(ii) Quality conformance: The finished products must conform (match) to the
product design specifications.
(iii) Reliability: The products must be reliable or dependable. They must not easily
breakdown or become non-functional. They must also not require frequent repairs.
They must remain operational for a satisfactory longer-time to be called as a
reliable one.
(iv) Safety: The finished product must be safe for use and/or handling. It must not
harm consumers in any way.
(v) Proper storage: The product must be packed and stored properly. Its quality
must be maintained until its expiry date.
(i) For Company: Product quality is very important for the company. This is
because, bad quality products will affect the consumer’s confidence, image and
sales of the company. It may even affect the survival of the company. So, it is very
important for every company to make better quality products.
(ii) For Consumers: Product quality is also very important for consumers. They
are ready to pay high prices, but in return, they expect best-quality products. If they
are not satisfied with the quality of product of company, they will purchase from
the competitors. Nowadays, very good quality international products are available
in the local market. So, if the domestic companies don’t improve their products’
quality, they will struggle to survive in the market.
Every customer has an ideal expectation of the service they
want to receive when they go to a restaurant or store. Service
quality measures how well a service is delivered, compared to
customer expectations. Businesses that meet or exceed
expectations are considered to have high service quality. Let's
say you go to a fast food restaurant for dinner, where you can
reasonably expect to receive your food within five minutes of
ordering. After you get your drink and find a table, your order is
called, minutes earlier than you had expected! You would
probably consider this to be high service quality. There are five
dimensions that customers consider when assessing service
quality. Let's discuss these dimensions in a little more detail.
service quality was seen as having two basic dimensions:

Technical quality: What the customer receives as a result of interactions with the
service firm (e.g. a meal in a restaurant, a bed in a hotel)

Functional quality: How the customer receives the service; the expressive nature of
the service delivery (e.g. courtesy, attentiveness, promptness)

The technical quality is relatively objective and therefore easy to measure. However,
difficulties arise when trying to evaluate functional quality
Eight dimensions of product quality management can be used at a strategic level to
analyze quality characteristics. The concept was defined by David A. Garvin, formerly C.
Roland Christensen Professor of Business Administration at Harvard Business School (died
30 April 2017).Garvin was posthumously honoured with the prestigious award for
'Outstanding Contribution to the Case Method' on March 4, 2018.
Some of the dimensions are mutually reinforcing, whereas others are not—improvement in
one may be at the expense of others. Understanding the trade-offs desired by customers
among these dimensions can help build a competitive advantage.

Garvin's eight dimensions can be summarized as follows:

Performance: Performance refers to a product's primary operating characteristics. This

dimension of quality involves measurable attributes; brands can usually be ranked
objectively on individual aspects of performance.

Features: Features are additional characteristics that enhance the appeal of the product or
service to the user.
Reliability: Reliability is the likelihood that a product will not fail within a specific time
period. This is a key element for users who need the product to work without fail.

Conformance: Conformance is the precision with which the product or service meets
the specified standards.

Durability: Durability measures the length of a product’s life. When the product can be
repaired, estimating durability is more complicated. The item will be used until it is no
longer economical to operate it. This happens when the repair rate and the associated
costs increase significantly.

Serviceability: Serviceability is the speed with which the product can be put into service
when it breaks down, as well as the competence and the behaviour of the service person.

Aesthetics: Aesthetics is the subjective dimension indicating the kind of response a user
has to a product. It represents the individual’s personal preference.

Perceived Quality: Perceived Quality is the quality attributed to a good or service based
on indirect measures.
Cost of Quality is a methodology used to define and measure where and what
amount of an organization’s resources are being used for prevention activities and
maintaining product quality as opposed to the costs resulting from internal and
external failures. The Cost of Quality can be represented by the sum of two
factors. The Cost of Good Quality and the Cost of Poor Quality equals the Cost of
Quality, as represented in the basic equation below:
CoQ = CoGQ + CoPQ
The Cost of Quality equation looks simple but in reality it is more complex. The
Cost of Quality includes all costs associated with the quality of a product from
preventive costs intended to reduce or eliminate failures, cost of process controls
to maintain quality levels and the costs related to failures both internal and
external.
How to Measure Cost of Quality (COQ)

The methods for calculating Cost of Quality vary from company to company. In
many cases, organizations like the one described in the previous example,
determine the Cost of Quality by calculating total warranty dollars as a percentage
of sales. Unfortunately this method is only looking externally at the Cost of
Quality and not looking internally. In order to gain a better understanding, a more
comprehensive look at all quality costs is required.

The Cost of Quality can be divided into four categories.

1.They include Prevention,

2.Appraisal,
3.Internal Failure and
4.External Failure.

Within each of the four categories there are numerous possible sources of cost
related to good or poor quality.
The Cost of Good Quality (CoGQ)
Prevention Costs – costs incurred from activities intended to keep failures to a
minimum. These can include, but are not limited to, the following:
•Establishing Product Specifications
•Quality Planning
•New Product Development and Testing
•Development of a Quality Management System (QMS)
•Proper Employee Training
Appraisal Costs – costs incurred to maintain acceptable product quality levels.
Appraisal costs can include, but are not limited to, the following:
•Incoming Material Inspections
•Process Controls
•Check Fixtures
•Quality Audits
•Supplier Assessments
The Cost of Poor Quality (CoPQ)
Internal Failures – costs associated with defects found before the product or service
reaches the customer. Internal Failures may include, but are not limited to, the following
examples:
•Excessive Scrap
•Product Re-work
•Waste due to poorly designed processes
•Machine breakdown due to improper maintenance
•Costs associated with failure analysis
External Failures – costs associated with defects found after the customer receives the
product or service. External Failures may include, but are not limited to, the following
examples:
•Service and Repair Costs
•Warranty Claims
•Customer Complaints
•Product or Material Returns
•Incorrect Sales Orders
•Incomplete BOMs
•Shipping Damage due to Inadequate Packaging
These four categories can now be applied to the original Cost of Quality equation. Our
original equation stated that the Cost of Quality is the sum of Cost of Good Quality and Cost
of Poor Quality. This is still true however the basic equation can be expanded by applying
the categories within both the Cost of Good Quality and the Cost of Poor Quality.
The Cost of Good Quality is the sum of Prevention Cost and Appraisal Cost

(CoGQ = PC + AC)

The Cost of Poor Quality is the sum of Internal and External Failure Costs

(CoPQ = IFC + EFC)

By combining the equations, Cost of Quality can be more accurately defined, as shown in
the equation below:

COQ = (PC + AC) + (IFC + EFC)

One important factor to note is that the Cost of Quality equation is nonlinear. Investing in the
Cost of Good Quality does not necessarily mean that the overall Cost of Quality will
increase. In fact, when the resources are invested in the right areas, the Cost of Quality
should decrease. When failures are prevented / detected prior to leaving the facility and
reaching the customer, Cost of Poor Quality will be reduced.
 Who Was He?
 Born in 1900, W. Edwards Deming was an American engineer, professor,
statistician, lecturer, author, and management consultant.
 What Was His Philosophy?
 Deming opined that by embracing certain principles of the management, organizations
can improve the quality of the product and concurrently reduce costs. Reduction of
costs would include the reduction of waste production, reducing staff attrition and
litigation while simultaneously increasing customer loyalty. The key, in Deming’s
opinion, was to practice constant improvement and to imagine the manufacturing
process as a seamless whole, rather than as a system made up of incongruent parts.
 In the 1970s, some of Deming's Japanese proponents summarized his philosophy in a
two-part comparison:
 Organizations should focus primarily on quality, which is defined by the equation
‘Quality = Results of work efforts/total costs’. When this occurs, quality improves, and
costs to fall suddenly and quickly from a high level or position., over time.
 When organizations' focus is primarily on costs, the costs will rise, but over time the
quality drops.
The Deming Cycle
Also known as the Shewhart Cycle, the Deming Cycle, often called
the PDCA, was a result of the need to link the manufacture of products
with the needs of the consumer along with focusing departmental
resources in a collegial effort to meet those needs.
The steps that the cycle follow are:
•Plan: Design a consumer research methodology that will
inform business process components.
•Do: Implement the plan to measure its performance.
•Check: Check the measurements and report the findings to
the decision-makers.
•Act/Adjust: Draw a conclusion on the changes that need to be
made and implement them.
The 14 Points for Management
Deming’s other chief contribution came in the form of his 14 Points for Management, which
consists of a set of guidelines for managers looking to transform business effectiveness.

1.Create constancy of purpose for improvement of product and service

2.Follow a new philosophy
3.Discontinue dependence on mass inspection
4.Cease the practices of awarding business on price tags.
5.Strive always to improve the production and service of the organization
6.Introduce new and modern methods of on-the-job training
7.Device modern methods of supervision
8.Let go of fear
9.Destroy barriers among the staff areas.
10.Dispose of the numerical goals created for the workforce.
11.Eradicate work standards and numerical quotas
12.Abolish the barriers that burden the workers
13.Device a vigorous education and training program
14.Cultivate top management that will strive toward these goals
The 7 Deadly Diseases for Management
The 7 Deadly Diseases for Management defined by Deming are the most serious and fatal
barriers that managements face, in attempting to increase effectiveness and institute
continual improvement.

1.The inadequacy of the constancy of purpose factor, to plan a product or service.

2.Organizations giving importance to short term profits.
3.Employing personal review systems to evaluate performance, merit ratings, and annual
.reviews for employees.
4.Constant Job Hopping
5.Use of visible figures only for management, with little or no consideration of figures
that are unknown or unknowable.
6.An overload of Medical Costs
7.Excessive costs of liability.
 Who Was He?
 Born in 1904, Joseph Juran was a Romanian-born American engineer and
management consultant of the 20th century, and a missionary for quality and
quality management. Like Deming, Juran's philosophy also took root in Japan.
He stressed on the importance of a broad, organizational-level approach to
quality – stating that total quality management begins from the highest position
in the management, and continues all the way to the bottom.
 Influence of the Pareto Principle
 In 1941, Juran was introduced to the work of Vilfredo Pareto. He studied the
Pareto principle (the 80-20 law), which states that, for many events, roughly
80% of the effects follow from 20% of the causes, and applied the concept to
quality issues. Thus, according to Juran, 80% of the problems in an
organization are caused by 20% of the causes. This is also known as the rule of
the "Vital Few and the Trivial Many". Juran, in his later years, preferred "the
Vital Few and the Useful Many" suggesting that the remaining 80% of the
causes must not be completely ignored.
What Was Juran’s Philosophy?
The primary focus of every business, during Juran's time, was the quality of the end
product, which is what Deming stressed upon. Juran shifted track to focus instead on the
human dimension of Quality management. He laid emphasis on the importance of
educating and training managers. For Juran, the root cause of quality issues was the
resistance to change, and human relations problems.
The Juran Quality Trilogy
One of the first to write about the cost of poor quality, Juran developed an approach for
cross-functional management that comprises three legislative processes:
1.Quality Planning:
This is a process that involves creating awareness of the necessity to improve, setting
certain goals and planning ways to reach those goals. This process has its roots in the
management's commitment to planned change that requires trained and qualified staff.
2.Quality Control:
This is a process to develop the methods to test the products for their quality. Deviation
from the standard will require change and improvement.
3.Quality Improvement:
This is a process that involves the constant drive to perfection. Quality improvements need
to be continuously introduced. Problems must be diagnosed to the root causes to develop
solutions. The Management must analyze the processes and the systems and report back
with recognition and praise when things are done right.
Three Steps to Progress
Juran also introduced the Three Basic Steps to Progress, which, in his opinion, companies
must implement if they are to achieve high quality.
1.Accomplish improvements that are structured on a regular basis with commitment and a
sense of urgency.
2.Build an extensive training program.
3.Cultivate commitment and leadership at the higher echelons of management.

Ten Steps to Quality

Juran devised ten steps for organizations to follow to attain better quality.
1.Establish awareness for the need to improve and the opportunities for improvement.
2.Set goals for improvement.
3.Organize to meet the goals that have been set.
4.Provide training.
5.Implement projects aimed at solving problems.
6.Report progress.
7.Give recognition.
8.Communicate results.
9.Keep score.
10.Maintain momentum by building improvement into the company's regular systems.
 Who Was He?
 Born in 1926, Philip B. Crosby was an author and businessman who contributed to
management theory and quality management practices. He started his career in
quality much later than Deming and Juran. He founded Philip Crosby and
Associates, which was an international consulting firm on quality improvement.
 His Philosophy/Theory
 Crosby's principle, Doing It Right the First Time, was his answer to the quality
crisis. He defined quality as full and perfect conformance to the customers'
requirements. The essence of his philosophy is expressed in what he called the
Absolutes of Quality Management and the Basic Elements of Improvement.
The Absolutes of Quality Management
Crosby defined Four Absolutes of Quality Management, which are
1.The First Absolute: The definition of quality is conformance to
requirements
2.The Next Absolute: The system of quality is prevention
3.The Third Absolute: The performance standard is zero defects
4.The Final Absolute: The measurement of quality is the price of non-
conformance
Zero Defects
Crosby's Zero Defects is a performance method and standard that
states that people should commit themselves too closely monitoring
details and avoid errors. By doing this, they move closer to the zero
defects goal. According to Crosby, zero defects was not just a
manufacturing principle but was an all-pervading philosophy that
ought to influence every decision that we make. Managerial notions
of defects being unacceptable and everyone doing ‘things right the
first time’ are reinforced.
The Fourteen Steps to Quality Improvement
1.Make it clear that management is committed to quality for the long term.
2.Form cross-departmental quality teams.
3.Identify where current and potential problems exist.
4.Assess the cost of quality and explain how it is used as a management tool.
4.Improve the quality awareness and personal commitment of all employees.
5.Take immediate action to correct the problems identified.
6.Establish a zero-defect program.
7.Train supervisors to carry out their responsibilities in the quality program.
8.Hold a Zero Defects Day to ensure all employees are aware there is a new direction.
9.Encourage individuals and teams to establish both personal and team improvements.
10.Encourage employees to tell management about obstacles they face in trying to meet
11.quality goals.
12.Recognize employees who participate.
13.Implement quality controls to promote continual communication.
14.Repeat everything to illustrate that quality improvement is a never-ending process.