BUSINESS ADMINISTRATION I, F.Y. B.Com.

, VNSGU, Surat UNIT 5

QUALITY MANAGEMENT
DEFINITION OF QUALITY According to Joseph Juran & Frank Gryna: "Quality is fitness for use." According to ISO 9000 Handbook: "the totality of characteristics of an entity that bear on its ability to satisfy stated or implied needs." According to American Society or !ua"ity #AS!$: "Quality denotes an excellence in goods and services, especially to the degree they conform to requirements and satisfy customers." CHARACTERISTICS %& 'here are i(e aspects o )ua"ity in a business conte*t: a& b& c& d& +roducing , pro(iding something& -hecking , con irming that something has been done correct"y& !ua"ity -ontro" , contro""ing a process to ensure that the outcomes are predictab"e& !ua"ity .anagement / directing an organi0ation so that it optimi0es its per ormance through ana"ysis and impro(ement& e& !ua"ity Assurance / obtaining con idence that a product or ser(ice 1i"" be satis actory& 2& !ua"ity has many di erent interpretations depending on the p"aces used& For 3ankers it is 4Ser(ice5 Hote"67estaurant it is 4-ustomer Satis action8 and or So t1are6I' industry it is 4!ua"ity +roduct8& 9& !ua"ity does not app"y on"y to the product or ser(ice itse" : it a"so app"ies to the peop"e5 processes5 and organi0ationa" en(ironment associated 1ith it& For e*amp"e5 the )ua"ity o a uni(ersity is ;udged not on"y by the )ua"ity o sta and course o erings5 but a"so by the e iciency and accuracy o processing paper1ork& <& +eters identi ied three stages in the de(e"opment o )ua"ity: %& Qua !t" #o$tro is concerned 1ith detecting and remo(ing the component 6 de ects 1hich a"" be"o1 set standards& 'his process takes p"ace a ter the products ha(e been produced& 2& Qua !t" a%%ura$#& occurs both during and a ter the e(ent& It is done to stop au"ts rom happening in the irst p"ace& 'he aim is to produce 1ith =0ero de ects=& 9& Tota Qua !t" Ma$a'&m&$t is concerned 1ith creating a )ua"ity cu"ture by continuous"y impro(ing the )ua"ity5 so that e(ery emp"oyee 1i"" "ook to satis y the customers& 'he customer is at the centre o the production process& >& !ua"ity can be de ined )ua"itati(e"y or )uantitati(e"y& 'he )ua"ity en(ironment o a co""ege can be )ua"itati(e in nature 1hereas the "ength o a product 1i"" ha(e )uantitati(e )ua"ity standards&

(A)IR *ATEL, ASST. *ROF. NLCCM, NAVSARI + ,-./

BUSINESS ADMINISTRATION I, F.Y. B.Com., VNSGU, Surat QUALITY MANAGEMENT !ua"ity .anagement can be de ined as5 4Management activities and functions involved in determination of quality policy and its implementation through means such as quality planning and quality assurance and quality control. !ua"ity .anagement ensures that the +roduct6Ser(ice is p"anned5 designed and de"i(ered to meet the -ustomer?s re)uirements& ADVANTAGES 0 IM*ORTANCEOF QUALITY MANAGEMENT !ua"ity management program in an organi0ation can generate number o bene its& 'hey are: .. Cu%tom&r Sat!%1a#t!o$2 A comp"ete imp"ementation o a !ua"ity .anagement System 1i"" ensure that the customer is satis ied not ;ust by meeting their re)uirements but e*ceed their e*pectations& ,. D&t&#t!o$ !$ D&3& o4m&$t Sta'&2 It a""o1s companies to detect any de ects during the de(e"opmenta" stage and remo(e them be ore de"i(ering to the customer& !ua"ity shou"d be in(o"(ed 1ithin the processes and shou"d not be brought ;ust into the ina" product& 'his 1i"" readi"y he"p in reducing the ai"ures in ear"y stages and pro(e to be success u" in the market& It is set up to pre(ent or great"y reduce de ects6errors& /. Co$%!%t&$#" !$ *ro5u#t!o$2 Ha(ing the proper"y designed )ua"ity management program 1i"" make sure that there is a consistency in producing good )ua"ity products and ser(ices& 6. R&5u#& R&7or82 Fo""o1ing the p"anned procedure5 right rom the beginning5 time 1asted or re1ork can be great"y minimi0ed& A"so the manpo1er usage or the re1ork can be e"iminated& 'his "eads to increased producti(ity5 and sa(es the cost on re1ork5 increasing the re(enue& 5. E11&#t!3& Mo$!tor!$'2 'o determine i the )ua"ity process is being managed e ecti(e"y and being o""o1ed e icient"y5 regu"ar per ormance re(ie1 can be done through interna" audits and meetings& 9. I$#r&a%&% Mar8&t Ba%&2 Increase in the market base o an organi0ation "arge"y depends on the demand or the product& I the product6ser(ice has more demand5 the demand or the de(e"opment o the product6ser(ice 1i"" in turn be increased& So it is important to 1ork to1ards the demand o the product6ser(ice& :. Bra$5 Lo"a t"2 @(ery Organi0ation must be "oya" to its -ustomers5 by ensuring the )ua"ity o the product and by bui"ding a "oya" re"ationship 1ith the -ustomers& 'his 1i"" in turn bring in more customers5 increasing the sa"es and enhance the branding& ;. Em4 o"&& mora &2 A company 1hich is trying to impro(e its )ua"ity demands the same "e(e" o impro(ement rom a"" its inputs& Aorkers moti(ated by the company 1e" are5 responsibi"ity and "eadership 1i"" ha(e a high mora"e on achie(ing a good amount o )ua"ity impro(ement& <. Im4ro3&% *ro5u#t!3!t"2 !ua"ity gi(es the (a"ue to product or ser(ice5 1hich 1i"" make it sustainab"e in the competing market& 3eing a )ua"ity product generates more re(enue5 1hich 1i"" re "ect on the (A)IR *ATEL, ASST. *ROF. NLCCM, NAVSARI + ,-./

BUSINESS ADMINISTRATION I, F.Y. B.Com., VNSGU, Surat emp"oyer producti(ity& Achie(ing and maintaining )ua"ity a""o1s or continua" impro(ement and pro it generation& .-. Co%t R&5u#t!o$2 7educed or "ess re1ork5 and e1er mistakes5 actua""y reduces the cost o product de(e"opment and marketing& A more e icient organi0ation 1i"" make e1er mistakes5 creating "esser de"ays& 'hus there is "ess "oss on capita" and opportunity cost5 pa(ing 1ay or a considerab"e increase in pro it& DISADVANTAGES OF QUALITY MANAGEMENT .. R&%!%ta$#& to C=a$'&2 Aorkers may ee" that their ;obs or occupations 1ithin the company are at risk under a )ua"ity management program5 and as a resu"t5 they may be s"o1 or resistant to making the necessary changes or the )ua"ity management program to 1ork proper"y& ,. La>our Tur$o3&r2 Ski""ed 1orkers may be "ost as they decide to "ea(e the company as they may not be happy 1ith the 1ay company is mo(ing ahead or they may not imp"ement things proper"y5 causing increased cost& /. H!'= Co%t2 'he high cost o imp"ementing a )ua"ity management program may a ect the short term programmes o the company& 'he cost o training 1orkers may be high& As a resu"t5 the company might not be ab"e to generate pro its in the near uture& 6. H!'= Co%t o1 T!m&2 !ua"ity management program may take se(era" years to imp"ement& Hence the bene its o )ua"ity management may take many years to come& 5. Mor& r&%our#&% &$'a'&52 In order to imp"ement )ua"ity management program5 companies might engage more resources and hence companies might not be ab"e to use those resources at the right p"ace& 9. D!11!#u t to u$5&r%ta$52 Sometimes5 it becomes di icu"t or the company to make its 1ork orce understand about e(ery aspect o )ua"ity& As a resu"t o this5 companies may ind it di icu"t to imp"ement the )ua"ity management program& QUALITY STANDARDS ?Nat!o$a a$5 I$t&r$at!o$a @ 3ureau o Indian Standards Act5 %9BC is the go(erning Act in India or the preparation and en orcement o )ua"ity standards& 'he Act app"ies to 1ho"e o India& Dnder the Act5 the -entra" Go(ernment has set up5 3ureau o Indian Standards #3IS$ #origina""y Indian Standards Institution #ISI$$ as the Eationa" Standards 3ody o India or promoting the standardi0ation mo(ement in the country& 3ureau o Indian Standards is operating (arious .anagement Systems -erti ication Schemes under 1hich "icenses are granted to (arious industry and ser(ice organi0ations:, !ua"ity .anagement Systems -erti ication Scheme , IS6ISO 900% #!.S$ @n(ironmenta" .anagement Systems -erti ication Scheme , IS6ISO %<00%#@.S$ Occupationa" Hea"th and Sa ety .anagement Systems , IS %B00% #OHS.S$ Ha0ard Ana"ysis -ritica" -ontro" +oint , IS %>000 #HA--+$ certi ication 3ureau o Indian Standards #3IS$ is a ounder member o ISO #Internationa" Organi0ation or Standardi0ation$& ISO is a 1or"d1ide ederation o nationa" standards bodies that aims to pro(ide a sing"e set o standards 1or"d1ide& 'he ob;ecti(e o ISO is to promote the de(e"op standardi0ation and (A)IR *ATEL, ASST. *ROF. NLCCM, NAVSARI + ,-./

BUSINESS ADMINISTRATION I, F.Y. B.Com., VNSGU, Surat re"ated acti(ities in the 1or"d in order to aci"itate internationa" e*change o goods and ser(ices5 and to de(e"oping cooperation in the ie"d o inte""ectua"5 scienti ic5 techno"ogica" and economic acti(ity& ISO=s 1ork programme ranges rom standards or traditiona" acti(ities5 such as agricu"ture and construction& 'his ranges rom mechanica" engineering5 to medica" de(ices5 to the ne1est in ormation techno"ogy de(e"opments5 such as the digita" coding o audio,(isua" signa"s or mu"timedia app"ications& ISO has pub"ished a 1ide range o internationa" standards& 'he ISO 9000 series is among ISO=s most 1ide"y kno1n standards& It re ers to a set o )ua"ity management standards& It represents an internationa" agreement on good management practices 1ith the aim o ensuring that the organi0ation can a"1ays de"i(er the product or ser(ices that meet the customer?s )ua"ity re)uirements& It pro(ides a rame1ork or )ua"ity management throughout the processes o producing and de"i(ering products and ser(ices or the customer& .ore than ha" a mi""ion organi0ations in more %<9 countries are imp"ementing these standards& 'he ISO 9000 series enab"es an organisation to set up a )ua"ity management system and supp"y products and ser(ices that aim to achie(e customer satis action& !ua"ity management under the ISO 9000 ami"y means that an organi0ation needs to 1u 1! 2+

'he customer=s )ua"ity re)uirements5 and App"icab"e regu"atory re)uirements5 1hi"e aiming to increase customer satis action5 and Achie(e continua" impro(ement o its per ormance in pursuit o these ob;ecti(es&

'he ami"y o ISO 9000 standards is made up o our core standards:,

ISO 9000:2000 :/ !ua"ity .anagement Systems , Fundamenta"s and Focabu"ary ISO 900%:2000 :/ !ua"ity .anagement Systems / 7e)uirements ISO 900<:2000 :/ !ua"ity .anagement Systems / Guide"ines or per ormance impro(ements ISO %90%%: 2002 :/ Guide"ines or )ua"ity and6or en(ironmenta" management systems auditing

3ureau o Indian Standards#3IS$ has adopted these ISO 9000 standards and has numbered them as IS6ISO 9000:2000: IS6ISO 900%:2000: IS6ISO 900<:2000: and IS6ISO %90%%:2002& 'hese standards pub"ished by 3IS are simi"ar to ISO 9000 standards& ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ,

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