Chapter Five

QUALITY MANAGEMENT AND

CONTROL
Chapter outline
• Meaning and nature of quality

• Overview of TQM

• Quality Specification

• Continuous Improvement

• Statistical Quality Control

• Process Control Charts

Learning objectives
• Define the term quality
• Explain why quality is important and consequence of poor quality
• Identify determinants of quality
• Describe costs associated with quality
• Describe TQM
• Describe tools of quality management
 Introduction
• Our globalized economy is dominated by three Cs –
• Competition,
• Change and
• Complexity.

• The best way to meet the challenge of the three Cs is to focus on our
customers.

• Once it is accepted that, success begins and ends with the customer, we
find ourselves on to the path to Total Quality Management (TQM).
 Quality

• Quality- some people view it as “ performance to standard”

others view it as “ meeting customer’s needs”

“satisfying the customers” or fitness for use.

• According to ISO 8402, quality is “the totality of features and characteristics of a

product or service that bear on its ability to satisfy stated or implied needs”.
 Costs of Quality
Total Internal failure
Cost • Costs associated with producing
Total
defective product before delivery
Cost • i.e. rework cost, scraps, downtime
Reasons
• Due to defective materials
External Failure • Incorrect machine setting
• Carelessness
External failure costs
• Company’s image
Internal Failure
• Repair costs
Prevention Appraisal cost
• Quality, design
Appraisal Prevention cost
• Training for personnel
Quality Improvement
Dimensions of quality
• Quality of market research
Quality of
• Quality of concept
design
• Promptness • Quality of specification
• Competence
• Integrity
co Q
Customer
ser nf ua
satisfaction or lit
Fi vi
el ce m y
an
• Reliability • Logistical
• Maintainability support
Availability
• Technology • Employee
• Management
Quality specification

• Quality specification are detailed requirements that define the quality

of a product, service or process.

• Quality includes tangible elements such as measurements and

intangible elements such as smell and taste.
 Quality Management
• Quality management is the process of identifying and administering the
activities needed to achieve the quality objectives of an organization.

• According to Fred Luthans, “TQM is an organizational strategy with

accompanying techniques that deliver quality products and/or services
to customers.”
Total Quality Management

• management centered on quality and based on the participation of

everybody which aims at the customer satisfaction and at the
improvement of the company's personnel, of the company and of the
society.

• Managing the entire organization so that it excels on all dimensions of

products and services that are important to the customer

• TQM gurus agreed on “never achieved”! Do you agree? Why?

Approaches in TQM

• Find out what customer wants

• Designing the product or service that can satisfy customers’ want

• Design good production process

• Keep it track of results

• Extend these concepts to suppliers and distributors

Some facts/ideas in quality management

• Most problems are caused by system, not workers

• Quality cannot be improved by trying harder

• Zero defect: make it right the first time

• Cross functional participation

• Quality is free
Concepts/How to implement TQM
• Continuous improvement (Kaizen)- never ending:
• Employees empowerment- give responsibility
• Benchmarking- selecting best model
• Team approach
• Knowledge of TQM tools – involvement of people, quality @ source
• Quality function deployment – involvement of customers in product design
• JIT
• Six sigma
• Taguchi concept
Leaders in Quality (Reading assignment)
• W. Edwards Deming Edwards 14 Points for Management

(1900-1993)

• Joseph M. Juran Top management commitment, fitness for use

• Armand Feigenbaum Total Quality Control

• Philip B. Crosby Quality is Free, zero defects

• Kaoru Ishikawa Company Wide Quality Control Movement

(1915-1989) (CWQC)
Continuous improvement

▪Represents continual improvement of all processes

▪Involves all operations and work centers including

suppliers and customers

▪ People, Equipment, Materials, Procedures

Process improvement
• Measurement
• External and internal
• Analysis
• Analyse variation
• Control
• Adjust process
• Improvement
• Reduce variation
• Innovation
Deming’s PDCA model

1.Plan
4. Act Identify the
Implement improvement and
the plan make
a plan

3. Check 2. Do
Is the plan Test the
working? plan
 Six sigma

• Developed by Motorola, later adopted & enhanced by Honeywell, Texas instruments and GE

• Employ statistical and data analysis tools to eliminate defects and solve quality problems in
different kinds of business processes.

• Highly structured approach to process improvement

Two meanings

• Statistical definition of a process that is 99.9997% capable, 3.4 defects per million
opportunities (DPMO)

• A program designed to reduce defects, lower costs, and improve customer satisfaction
Six sigma
• Lower limits
Upper limits
6
2,700 defects/million

3.4 defects/million

Mean

±3
±6
 Six sigma- DMAIC Approach

• Define critical outputs and identify gaps for improvement

• Measure the work and collect process data

• Analyze the data

• Improve the process

• Control the new process to make sure new performance is maintained

Six Sigma implementation

• Emphasize defects per million opportunities as a standard metric

• Provide extensive training
• Focus on corporate sponsor support (Champions)
• Create qualified process improvement experts (Black Belts, Green Belts, etc.)
• Set stretch objectives

This cannot be accomplished without a major commitment from top

level management
Employee empowerment
• Getting employees involved in product and process improvements
• 85% of quality problems are due
to process and material
• Techniques
• Build communication networks
that include employees
• Develop open, supportive supervisors
• Move responsibility to employees
• Build a high-morale organization
• Create formal team structures
Establishing a Quality circle

• Quality circle is A group of workers who do the same or similar work.

• Group of employees who meet regularly to solve problems

• Trained in planning, problem solving, and statistical methods

• Often led by a facilitator

• Very effective when done properly

Benchmarking

• Selecting best practices to use as a standard for performance

• Determine what to
benchmark

• Form a benchmark team

• Identify benchmarking partners

• Collect and analyze benchmarking information

• Take action to match or exceed the benchmark

JIT
• An inventory system
• A management strategy that aligns raw material order from suppliers
directly with production schedules
• Relationship to quality:
• JIT cuts the cost of quality

• JIT improves quality

• Better quality means less inventory and better, easier-to-employ JIT system
Taguchi Concepts
• Japanese engineer Genichi Taguchi developed Taguchi method of quality control

• It as an Engineering and experimental design methods to improve product

and process design

• Identify key component and process variables affecting product variation

• Taguchi Concepts
• Quality robustness
• Quality loss function
• Target-oriented quality
Quality robustness
• Ability to produce products uniformly in adverse manufacturing and
environmental conditions

• Remove the effects of adverse conditions

• Small variations in materials and process do not destroy product quality

Quality loss of function

• Shows that costs increase as the product moves away from what the
customer wants

• Costs include customer dissatisfaction, warranty and service, internal

scrap and repair, and costs to society

• Traditional conformance specifications are too simplistic

 Quality Loss Function
Unacceptable L = D2C
High loss
Poor where
Loss (to producing organization,
L = loss to society
customer, and society)
Fair D = distance from target value
Good C = cost of deviation

Best
Low loss Target-oriented quality yields more
product in the “best” category

Target-oriented quality brings

product toward the target value

Frequency
Conformance-oriented quality
products within 3 standard keeps
deviations

Lower Target Upper

Specification
Tools of TQM
• Tools for Generating Ideas
• Check sheets
• Scatter diagrams
• Cause-and-effect diagrams
• Tools to Organize the Data
• Pareto charts
• Flowcharts
• Tools for Identifying Problems
• Histogram
• Statistical process control chart
Seven tools of TQM
I: Check Sheet: An organized method of recording data

Hour
Defec 1 2 3 4 5 6 7 8
t
A /// / / / / /// /
B // / / / // ///
C / // // ////
Seven tools of TQM
II: Scatter Diagram: A graph of the value of one variable vs. another
variable

Pr
od
uc
tiv
ity

Absenteeism
Seven tools of TQM
III: Cause-and-Effect Diagram: A tool that identifies process elements
(causes) that might effect an outcome
Cause
Materials Methods
Effect

Manpower Machinery
 Cause-and-Effect Diagrams

Material Method
(ball) Grain/Feel (shooting process)
(grip) Aiming point
Size of ball
Air pressure nees
Bend k
Hand position
Lopsidedness Balance
Follow-through Missed
Training free-throws
Rim size
Conditioning Motivation Rim height
Consistency ( ter)
Concentration s
h
Manpower o
o
Rim alignment B
a
c
Machine (hoop & backboard) k
b
o
a
r
d
s
t
a
b
i
l
i
t
y
Seven tools of TQM
IV: Pareto Chart: A graph to identify and plot problems or defects in
descending order of frequency

Fr
Pe
eq Number of rc
ue occurrence en
nc
6
10 2
A B C D E
Seven tools of TQM
V: Flowchart (Process Diagram): A chart that describes the steps in a
process
Seven tools of TQM
VI: Histogram: A distribution showing the frequency of occurrences of
a variable
Distribution

Frequency

Repair time (minutes)

Seven tools of TQM
VII: Statistical Process Control Chart: A chart with time on the
horizontal axis to plot values of a statistic

Upper control limit

Target value

Lower control limit

Time
Quality improvement and control
Steps
1. Identification of the production process
2. Identification of the critical control points
3. Deciding the types of measurement to be used
A. Attribute measurements – a insignificant defective results in discarding of
total product i.e. bottle
B. Variable measurement- there tolerance i.e. chalk
4. Deciding on the amount of inspection
5. Deciding as to whom has to conduct the inspection
Statistical analysis of quality
• The application of quality control quarts

P-chart – proposed by Walter Shewhart

• is a control chart used to monitor the proportion of nonconforming units in sample.
• The variable about which the statistical data is taken and analysed using a p-chart is
the sample proportion defective.
• From the sample proportion defectives of all the sample taken, values of the central
limit (ground average), upper control limit (UCL) and Lower control Limit (LCL) are
completed
Steps in developing P-chart
Steps
 Example
• A bottle production line manager needs maintain a producing qualified bottles. To
attain the desired level of quality it needs be use sample inspection. To undertake
the inspection activity, he has assigned 5 individual expert each of which inspected
20 bottles of each sample. The total number of defective bottles (non conforming
bottles) in each the samples are

Sam 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
ple #
di 6 0 4 10 6 4 12 10 8 10 12 10 14 8 6 16 12 14 20 18
=200
 Solution
Samp 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
le #
di 6 0 4 10 6 4 12 10 8 10 12 10 14 8 6 16 12 14 20 18
=200
pi .06 .00 .04 .10 .06 .04 .12 .10 .08 .10 .12 .10 .14 .08 .06 .16 .12 .14 .20 .18
 Decision: the production process has to be stopped
and search the cause Out of the line
P-chart
0.20
0.18 UCL

0.16
0.14
0.12
0.10
0.08
0.06
0.04
0.02
0.00 LCL
 2 4 6 8 10 12 14 16 18 20
Out of the line
P-chart with variable sample size
 Sample Observation Sample Sample
ẍ Range

1
2
3
4
5

Frequency
Sample size
• Assume that an electric circuit production line managers wants to maintain certain
level of quality and he has taken six (6) sample of size 5. the sample average and
sample range voltage measures are given the table
Sample 1 2 3 4 5 6
Mean (X) 2.6 3.5 2 1.58 3.4 3.6
Range (R) 1.2 1.8 2.0 0.8 2.1 2.8

• Required: develop the appropriate X chart and R-chart to determine the quality of
CxCs (resistance measures) of the electric circuit is under the desired state of the
control or not
• Assume that sample size is increase to seven and the resulting grand average and
average of the range are respectively 4.8 and 3.4, what control limit do you believe
have to be determined and used in developing appropriate mean and range chart
Solution
 a. Mean chart b. range chart

4 UCL 3.8 UCL

3.8
3.6 2.8
3.4
3.2 2.1
2.9 CL 2.0
2.6
1.8 CL
2.0
1.9 LCL
1.2
0.8
1.4

0 LCL
1 2 3 4 5 6 1 2 3 4 5 6
Example

• A component to be used in an assembly of transmission mechanism is

manufactured in a production line for which quality characteristics of
tensile strength is needed to be control. 20 samples of size 4 are
obtained from the process for each component, measurements on
tensile strength taken are shown below in the below/next slide
 Observation
Sample Tensile strength measures
1 18 16 15 20
2 17 22 18 19
3 20 18 15 18
4 19 20 15 17
5 21 21 23 19
6 21 19 20 18
7 22 20 24 22
8 22 20 20 22
9 18 16 18 18
10 18 17 19 18
11 24 18 20 22
12 22 20 21 20
13 19 17 20 21
14 18 18 17 20
15 18 16 17 18
16 20 19 16 18
17 22 19 23 20
18 19 23 20 21
19 19 20 18 20
20 21 19 18 20
Hint
Observation
Sample Tensile strength measures Total
1 18 16 15 20 69
2 17 22 18 19 76
3 20 18 15 18 71
4 19 20 15 17 71
5 21 21 23 19 90
6 21 19 20 18 78
7 22 20 24 22 88
8 22 20 20 22 84
9 18 16 18 18 70
10 18 17 19 18 72
11 24 18 20 22 84
12 22 20 21 20 83
13 19 17 20 21 77
14 18 18 17 20 73
15 18 16 17 18 69
16 20 19 16 18 73
17 22 19 23 20 84
18 19 23 20 21 83
19 19 20 18 20 77
20 21 19 18 20 79
Given
• A2= 0.729

• D4= 2.282

• D3= 0

• n= 4

Required

• Develop X-chart and R chart for these data and determine if quality cxcs (tensile strength)
is under the desired sate of control, if not which sample/s does indicate that it is out of
control
 Observation
range (the difference between

large and small number)

Sample Tensile strength measures Total
1 18 16 15 20 69 Divided by 4 X1= 17.25 5
2 17 22 18 19 76 X2= 19 5
3 20 18 15 18 71 X3 = 17.5 5
4 19 20 15 17 71 X4 = 17.5 5
5 21 21 23 19 90 X5 = 21 4
6 21 19 20 18 78 X6 = 19.5 3
7 22 20 24 22 88 X7 = 22 4
8 22 20 20 22 84 X8 = 21 2
9 18 16 18 18 70 X9 = 17.5 2
10 18 17 19 18 72 X10 = 18 2
11 24 18 20 22 84 X11 = 21 6
12 22 20 21 20 83 X12 = 20.75 2
13 19 17 20 21 77 X13 = 19.25 4
14 18 18 17 20 73 X14 = 18.25 3
15 18 16 17 18 69 X15 = 17.25 2
16 20 19 16 18 73 X16 = 18.25 4
17 22 19 23 20 84 X17 = 21 4
18 19 23 20 21 83 X18 = 20.75 4
19 19 20 18 20 77 X19 = 19.25 2
20 21 19 18 20 79 X20 = 19.75 total = 387.5 3 total 66
Solution
X chart
X
22

21

20

19

18

17

2 4 6 8 10 12 14 16 18 20
R chart - class work
X
7

2 4 6 8 10 12 14 16 18 20
TQM In Services

• Service quality is more difficult to measure than the quality

of goods

• Service quality perceptions depend on

• Intangible differences between products

• Intangible expectations customers have of those products

Service Quality
The Operations Manager must recognize:

1. The tangible component of services is important

2. The service process is important

3. The service is judged against the customer’s expectations

4. Exceptions will occur

Determinants of Service Quality
 Reliability  Communication

 Responsiveness  Credibility

 Competence  Security

 Access  Understanding/ knowing the customer

 Courtesy  Tangibles
Service quality recovery strategy

• Managers should have a plan for when services fail

• Marriott’s LEARN routine

• Listen
• Empathize
• Apologize
• React
• Notify
 The end!

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