Chapter Eight Quality Management:

Industrial Engineering & Management

8.1 Evolution of Quality Management
8.2 Quality Definitions
8.3 Total Quality management (TQM)
2081/11/04
Paschimanchal Campus
BME/BAME III/II
Compiled By : Er. Rajesh Bhattarai
8.1 Evolution of Quality Management
Evolution of Quality Management
Quality Inspection/Quality Control& Quality Assurance
Three terms that are often used synonymously are Quality Inspection (QI), Quality Assurance
(QA) and Quality Control (QC). However, there are some important differences between the
three.
Quality Inspections
• Quality inspections are carried out after production, i.e. when the product is already
finished. The production process is not taken into account in this form of quality
assessment. Only the final result counts: the quality of the actually manufactured products.
Quality Control
• Quality control, on the other hand, means that the products are not only tested for defects,
but also that the cause of these defects is traced. These results are passed on to the
management level as well as to the individual factory workers.
• They can then learn from the process errors and thus reduce the error rate and
improve quality.
• Thus, quality inspections are a part of quality control, but quality control involves more
activities than just the plain inspection of products.
Quality Assurance
• The third thing that is often confused with the previous two is quality assurance.
• With quality assurance, quality management measures are carried out before the start of
production to prevent any production errors from occurring in the first place. A big part of
quality assurance measure are usually performed while the product is still being developed.
Typically, test runs are carried out before the actual start of production so that everything
runs smoothly in the actual production. Thus, quality assurance is a proactive process.
8.2 Quality Definitions
The meaning of quality
• Quality is a relative term and it is generally used with
reference to the end of the product. For example, a gear
used in a sugarcane juice extracting machine may not
possess good surface finish , tolerance and accuracy as
compared with the gear in the head stock of lathe , still
it may be considered of good quality if it works
satisfactorily in the juice extracting machine (Customer
Satisfaction)
• The word “Quality” has variety of meanings:
1. Fitness for purpose: The component is said to possess
good quality, if it works well in the equipment for
which it is meant. Quality is thus defined as fitness
for purpose.
2. Feature : Product appearance , performance , life , reliability ,
taste ,odour , maintainability etc as a quality characteristics.
3. Degree of preference over competition
4. Customer Satisfaction etc.
Definition of Quality
1. Dr. Juran: Quality is fitness for use
2. Philip Crosby: Quality is conformance to requirements
3. Dr. Deming: Quality should be aimed at the needs of
consumer, present and future.
4. Feigenbaum: “The total composite product and service
characteristics of marketing , engineering, manufacturing
and maintenance through which the product and service in
use will meet the expectation of the customer”
5. ISO 8403-1994 : “Quality is totality of characteristics of an
entity that bears an ability to satisfy stated and implied
needs”.
6. Q= Performance/Expectations > 1
Quality Definition
5. “The quality of a product/service is the degree of
conformance of all the relevant features and
characteristics of the product/service to all aspects of
a customer’s need, limited by the price and delivery
that he or she will accept”. Simply it means:
-Determine the needs of customers
-Provide a “product or service that meets those needs
at a price and availability that customer will accept
Objective: “Quality is built in & not inspected in”
Dimensions of Quality
Quality Attributes (Dimensions of Quality)
1. Performance:A performance characteristic describes a product's essential function. For a car,
performance would include characteristics like millage per liter , acceleration, handling, cruising
speed etc.
2. Features:For a car, features would include the built-in GPS, air bags , ABS etc.
3. Reliability is the ability of a product or service to perform as expected over time.
4. Serviceability:Serviceability is the ease at which a user can repair a faulty product or get it
fixed.
5. Durability:is the measurement of product life. This defines the amount of use the customer
could get from the product before it deteriorates. For example, how long will your car last?
6. Aesthetic
Aesthetics refers to the appearance of a product or service. It includes all aspects related to the
physical appearance of a product, for example, the weight, colour , size , packaging design etc.
7. Perceived quality: Perceived Quality is the impression of excellence that a customer
experiences about a product, brand or business, derived through price, marketing strategy, sight,
sound, touch, and scent.
For example, imagine viewing a new car in a showroom for the first time. Within the first few
moments, you will be able to judge if the product is of high quality or not.
Producers believe that a quality product has quality of conformance, which means that their
products are designed and produced to specifications.
8. Conformance : is the degree to which a product conforms to its specification.
Objective of Quality
i. Customer Satisfaction
ii. Cost Reduction
iii. Waste Reduction
iv. Rework Decreases
v. Increase Productivity
vi. Product Guarantee
vii. Goodwill, Sales, Market growth, Profit increase,
viii.Motivation of employee increases
 Quality Control
• The quality control is a systematic control of those variables
that affect the excellence of the ultimate product.
• According to Alfred and Betty, “Quality control may be
defined as that industrial management technique or group of
technique by means of which products of uniform acceptable
quality are manufactured”.
• According to American society for quality (ASQ)” Quality
control consist of the observation techniques and activities
used to fulfill requirement for quality.”
• It mainly deals with making the things right rather than
discovering defect and rejecting those which are made
wrong. For carrying out quality control, a complete control
procedure is to be designed.
Quality costs more , but lack of quality costs even more.
Quality control
• Quality control is the operational techniques and activities
that are used to fulfil requirements for quality. Quality
inspection is done first for quality control. Activities such as
measuring , examining , testing , gauging one or more
characteristics of product or service and comparing these
with specified requirements to determine conformity is
quality inspection.Under the quality control following
things are used.
Various Factors affect the quality :Materials, Tools,
Machines , Type of labour , working Conditions , measuring
instruments, use of basic statistic, process control etc.
Inspection by operator
Feedback process information to the operators, setters and
production supervisors
Quality Assurance
• Quality assurance is a broad practice used for assuring the
quality of products or service. According to ASQ “quality
assurance is the planned and systematic activities
implemented in a quality system so that quality requirements
for the product and service will be fulfilled”.
• It contains all those plan and systematic actions required to
provide adequate confidence that a product or service will
satisfy given requirement for quality (ISO-8402-1986)
Process for quality assurance:
i. Statistical process control
ii. Failure mode and effect analysis
iii. Use of quality cost
iv. Comprehensive quality manuals
v. Advance quality planning
vi. System audits and third party approval
Parameters Quality Assurance (QA) Quality Control (QC)
Definition QA is a set of activities for QC is a set of activities for
ensuring quality in the ensuring quality in
processes by which products products, focused on
are developed identifying defects in the
product produced.
It focuses on providing
It focuses on fulfilling the
Objective assurance that the quality
quality requested.
requested will be achieved.
It is the technique of It is the technique to verify
Technique
managing quality. quality.
Type of tool It is a managerial tool. It is a corrective tool.
Process/ Product-
It is process oriented. It is product oriented.
oriented
The aim of quality control is
The aim of quality assurance
Aim to identify and improve the
is to prevent defects.
defects.
It is performed after the
It is performed before Quality
Order of execution Quality Assurance activity is
Control.
done.
Parameters Quality Assurance (QA) Quality Control (QC)
Technique type It is a preventive technique. It is a corrective technique.
Focus It is a proactive measure. It is a reactive measure.
All team members of the project Generally, the testing team of
Responsibility
are involved. the project is involved.
Involved in which It is involved during the It is not included during the
phase? development phase. development phase.
It is a less time-consuming It is a more time-consuming
Time consumption
activity. activity.
Which statistical Statistical Process Control (SPC) Statistical Quality Control
technique was statistical technique is applied to (SQC) statistical technique is
applied? Quality Assurance. applied to Quality Control.

Example Verification Validation

Quality. costs more , but lack of quality costs even more

• The statement “quality costs more,

but lack of quality costs even more”
emphasizes the importance of
investing in quality to prevent the
potentially higher costs associated
with poor quality outcomes.
• Long term perspective
• Customer Satisfaction
• Reputation
• Legal and regulatory compliance
• Higher costs due to defects, rework,
warranty claims, safety failures, and
lost reputation.
• Example: Toyota and Lexus models
experienced unintended
acceleration, causing multiple fatal
accidents. Impact: 9 million cars
recalled globally.
Cost of Quality
Cost of quality (COQ) is defined as a
methodology that allows an organization to
determine the extent to which its resources
are used for activities that prevent poor
quality, that appraise the quality of the
organization’s products or services, and that
result from internal and external failures.
Having such information allows an
organization to determine the potential
savings to be gained by implementing
process improvements.
COST OF POOR QUALITY (COPQ)?
• Cost of poor quality (COPQ) is defined
as the costs associated with providing
poor quality products or services. There
are two categories:
• Internal failure costs are costs associated
with defects found before the customer
receives the product or service.
• External failure costs are costs associated
with defects found after the customer
receives the product or service.
Internal Failure Costs
Internal failure costs is applicable when the product is in
factory and not been sold. These cost include
• Internal Failure Cost (Scrap, Rework, Failure analysis, Re-
inspection , scrap and rework from suppliers etc.)
External Failure Costs
These cost are applicable to goods when the product has been
sold. These cost include
• Warranty cost/charge
• Product liability( insurance and settlements )
• Consumers affairs ( dealing primarily with the customer
complaints about quality )
• Product returns, recalls
Intangible Quality Cost
 Loss of goodwill of the company
Prevention cost: Appraisal Cost
Prevention costs are incurred to Appraisal costs are associated with
prevent or avoid quality problems. measuring and monitoring activities
These costs are associated with the related to quality. These costs are
design, implementation, and associated with the suppliers’ and
maintenance of the quality customers’ evaluation of purchased
management system. They are materials, processes, products, and
planned and incurred before actual services to ensure that they conform
operation & they could include: to specifications. They could
include:
• Product or service requirements:
Establishment of specifications • Verification: Checking of
for incoming materials, processes, incoming material, process setup,
finished products, and services and products against agreed
specifications
• Quality planning: Creation of
plans for quality, reliability, • Quality audits: Confirmation that
operations, production, and the quality system is functioning
inspection correctly
• Quality assurance: Creation and • Supplier rating: Assessment and
maintenance of the quality system approval of suppliers of products
and services discrepancy
• Training: Development,
preparation, and maintenance of
programs
8.3 Total Quality Management
• TQM is an integrated organizational approach in delighting
customers (both external and internal) by meeting their
expectations on a continuous basis through everyone
involved , with the organization working on “Continuous
improvement in all product/services processes along with
proper problem solving methodology’’.
• Total- Made up the whole
• Quality- Customer Satisfaction
• Management-All functions
• TQM is the art of managing the whole to achieve excellence
The Key Elements of the TQM
 Focus on the customer
 Employee Involvement
 Continuous Improvement
 Total Quality Management Principles
• Customer Satisfaction
• Total Employee Commitment: This creates
empowerment through training and suggestion
mechanisms.
• Process Centered : You can deconstruct every activity
into processes, and, therefore, locate and repeat the best
process.
• Fact-Based Decision Making: Teams collect data and
process statistics to ensure that work meets
specifications.
• Effective Communications: There should be an open
dialogue throughout an organization.
• Strategic Thinking: Quality must be part of an
organization’s long-term vision.
• Integrated System: A shared vision, including
knowledge of and commitment to principles of quality,
keep everyone in a company connected. Taiichi Ohno
recognized that even suppliers are an important part of
the system.
• Continuous Improvement: Every employee should
always be thinking about how to better perform their
job.
TQM Benefits Of TQM
Characteristics of TQM • Higher profitability
• Committed management • Higher productivity
• Adopting & communicating • Elimination of defects and
about TQM waste
• Closure Customer relations • Improved quality
• Closure provider relations • Employee Satisfaction
• Benchmarking • Team Work
• Increased Training • Strengthened competitive
• Open Organization position
• Employee involvement • Improved customer focus
and satisfaction
• Flexible Production
• Enhanced market image
• Continuous improvements
• Better Communication
 Implementation of TQM
• W.E. Deming , father of TQM , has suggested Plan-Do-Check-Act cycle
for the implementation of TQM in any organization. The various steps in
PDCA cycle are shown in figure:
PLAN DO
1. Policies & Objectives 3. Education & Training
2. Methods to achieve 4. Implementation of change
objectives
ACT CHECK
7. Prevent Undesired effects 5. Observe Results
8. Measures for improvement 6. Analyse Results
Fig. Steps in TQM process
Tutorial : Chapter 8

1. Discuss the importance of quality for a manufacturing

organization. Give four important definitions of quality.
2. Write the history of evolution of quality management. "Quality is
a new competitive weapon". Justify the statements. Explain the
different types of cost of quality.
3. "Quality is meeting or exceeding customer expectations".
Comment
4. What is total quality management? State the guiding principles of
TQM. Describe the various elements of TQM in brief.
5. Write short notes about the prominent quality gurus. What are the
saying of E. Edwards Deming in relation to that quality
management?
6. What are different dimensions of quality? Explain Deming's
PDCA cycle with an example.
Thank You