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Chapter IV

BBA 5th sem Operations management
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0% found this document useful (0 votes)
8 views27 pages

Chapter IV

BBA 5th sem Operations management
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Chapter--Four

Quality Assurance
INTRODUCTION
Planned and systematic activities implemented within the
quality system that can be demonstrated to provide
confidence that a product or service will fulfill
requirements for quality
Quality Assurance is a system for evaluating
performance, service, of the quality of a product against
system, standard or specified requirement for customers.
QA is a way of preventing mistakes or defects in
manufactured products and avoiding problems when
delivering solutions or services to customers.
ISO-9000 defines Quality Assurance as a part of quality
management focused on providing confidence that
quality requirements will be fulfilled
• Quality is a measure of how closely a
good or service confirms to specified
standard.
• Quality standard may be any one or a
combination of attributes and variables
of the prouct being manufactured.
• Attributes may be performance,
reliability, apperance etc
• Variables may be some measurement
of variables like length, weight, height
etc
How Quality Improves Productiviy
.
Sales Gain
• Improved Response
• Higher Prices
• Improved Reputation

Improved Quality
Through TQM INcreased Profits

Reduced Cost
• Incereased Productivity
• Lower rework and scrap Costs
• Lower Warranty costs
Quality

• Quality means fitness for use


- quality of design
- quality of conformance

• Quality is inversely proportional to


variability.
QUALITY ASSURANCE VS QUALITY
CONTROL
Quality assurance Quality control

•A part of quality management


•A part of quality management
focused on providing confidence that
quality requirements will be fulfilled. focused on fulfilling quality
requirements.
•Planned and systematic activities
implemented within the quality system •The operational techniques and
provide confidence that a product or activities used to
service will fulfill requirements for fulfillrequirements for quality.
quality

•is a complete system to assure the •Quality Control just measures


quality of products or services. and determines the quality level of
products or services. It is a
process itself.
Dimensions of Product Quality
• Performance. ...

• Features. ...

• Reliability. ...

• Conformance. ...

• Durability. ...

• Serviceability. ...

• Aesthetics. ...

• Safety..
• Other Perception
Dimensions of Service Quality
• TANGIBLES-Appearance of physical facilities, equipment,
personnel, and communication materials

• RELIABILITY-Ability to perform the promised service dependably


and accurately

• RESPONSIVENESS-Willingness to help customers and provide


prompt service

• ASSURANCE-Knowledge and courtesy of employees and their


ability to convey trust and confidence

• EMPATHY-Caring, individualized attention the firm provides its


customers
• ACCURACY: Service performed is in right way
• ACCESIBILITY: Easy to access the service
• COMPLETENESS: Everything asked by customer is provided
Benifits of Quality to a firm

• It gives a positive company image


• it improves competitive ability both nationally
and internationally
• it increases market share, which translates in to
improved profits.
• it reduces costs which also translates in to
improved profits
• it reduces or eliminates product liability problems
avoiding unnecessary costs.
• it creates an atmosphere for high employee
morale, which improves productivity
Cost of Quality

• Costs of Quality or quality costs does not mean


the use of expensive or very highly quality
materials to manufacture a product. The term
refers to the costs that are incurred to prevent,
detect and remove defects from products
• Cost of Quality is 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
Prevention Costs
Prevention costs are incurred to prevent or avoid quality problems.
These costs are associated with the design, implementation, and
maintenance of the quality management system. They are planned and
incurred before actual operation, and they could include:

• Product or service requirements—establishment of specifications


for incoming materials, processes, finished products, and services

• Quality planning—creation of plans for quality, reliability, operations,


production, and inspection

• Quality assurance—creation and maintenance of the quality


system

• Training—development, preparation, and maintenance of programs


Appraisal Cost
• Appraisal costs are associated with measuring and monitoring
activities related to quality. These costs are associated with the
suppliers’ and customers’ evaluation of purchased materials,
processes, products, and services to ensure that they conform to
specifications. They could include:

• Verification—checking of incoming material, process setup, and


products against agreed specifications

• Quality audits—confirmation that the quality system is functioning


correctly

• Supplier rating—assessment and approval of suppliers of products


and services
Internal Failure Costs
Internal failure costs are incurred to remedy defects discovered before
the product or service is delivered to the customer. These costs occur
when the results of work fail to reach design quality standards and are
detected before they are transferred to the customer. They could
include:

• Waste—performance of unnecessary work or holding of stock as a


result of errors, poor organization, or communication

• Scrap—defective product or material that cannot be repaired, used,


or sold

• Rework or rectification—correction of defective material or errors

• Failure analysis—activity required to establish the causes of


internal product or service failure
External Failure Costs

External failure costs are incurred to remedy defects discovered by


customers. These costs occur when products or services that fail to
reach design quality standards are not detected until after transfer to
the customer. They could include:

• Repairs and servicing—of both returned products and those in the


field

• Warranty claims—failed products that are replaced or services that


are re-performed under a guarantee

• Complaints—all work and costs associated with handling and


servicing customers’ complaints

• Returns—handling and investigation of rejected or recalled


products, including transport costs
Leaders in Quality Quality Guru Contribution
Develop Control Charts and
The roots of Total Walter Shewhart introduce the term Quality
Quality Management Assurance
can be traced to early Develop course to teach quality-
1920's production control techniques for engineers
quality control ideas, W Edwards Deming
and the companies that were
and notably the militery supplier
concepts developed in
Japan beginning in the Revolutionized the Japanese
late 1940's and 1950's, Josheph M. Juran philosophy on quality
pioneered there by management
Americans Feigenbum, Armand V. devised the concept of Total
Juran and Deming... Feigenbaum Quality Control
More about Quality
Management and TQM Crosby argues that quality is
history. Philip Crosby
always cost effective

developed cause and effect


Karoun Ishikawa diagram also called the "Ishikawa"
or "Fishbone" diagram
Intenational Quality Standards
• International quality standards are criteria or rules set up by
organizations that help to determine compliance across national
borders. These rules make it easier to conduct business on a
level playing field and also allow more collaboration by
overcoming local or regional constraints.

• Some international organizations for quality standard are


International Organization for Standardization (ISO),The
International Electrotechnical Commission (IEC),International
Telecommunication Union (ITU),Joint Electron Device
Engineering Council (JEDEC),American National Standards
Institute (ANSI) etc

• The most influential group that monitors global standards is the


International Organization for Standardization (ISO). The ISO
helps define a consensus among participating groups, such as
national standards institutes from over 160 counties and various
industry associations
ISO 9000

• ISO defines a standard as “a document that


provides requirements, specifications, guidelines
or characteristics that can be used consistently to
ensure that materials, products, processes and
services are fit for their purpose.” Products and
services that follow ISO standards can be
deemed to be high quality, safe, and reliable.

• ISO 9000 is a set of international standards on


quality management and quality assurance
developed to help companies effectively
document the quality system elements to be
implemented to maintain an efficient quality
system. They are not specific to any one industry
and can be applied to organizations of any size.
ISO 9000 Series

ISO
Standard Tasks
Series

Quality management Provides guidelines on selection and use of


ISO 9000 and Quality Assurance quality management and qualiy assurance
Standard standard
It has 20 elements covering design,
Quality System: Quality
ISO 9001 developement, production, installation and
in design
servicing
18 elements covering production and
Quality System: Product
ISO 9002 installation.Applicable for the units excluding R
and Installation
& D functions

Quality System: Final 12 elements covering final inspection and


ISO 9003
inspection and test testing for labortories and warehouses etc

Quality Management Provides guidelines to interpret the quality


ISO 9004
System management and quality assurance.
ISO 14000

• ISO 14000 Family of Standards. ISO 14000 is a


series of standards developed by International
Organization for Standardization (ISO) to address
Environmental Management, or what you do to:
Minimize your negative impact on the
environment, Continually improve your
environmental performance.

• The primary objective of the ISO 14000 series of


standards is to promote effective environmental
management systems in organizations.
• ISO 14001 Environmental management systems - Requirements with
guidance for use

• ISO 14004 Environmental management systems - General guidelines on


implementation

• ISO 14006 Environmental management systems - Guidelines for


incorporating ecodesign

• ISO 14015 Environmental management - Environmental assessment of


sites and organizations (EASO)

• ISO 14020 to 14025 Environmental labels and declarations

• ISO/NP 14030 Green bonds -- Environmental performance of nominated


projects and assets; discusses post-production environmental assessment

• ISO 14031 Environmental management - Environmental performance


evaluation - Guidelines

• ISO 14040 to 14049 Environmental management - Life cycle assessment;


discusses pre-production planning and environment goal setting
• ISO 14046 Environmental management - Water footprint - Principles,
requirements and guidelines

• ISO 14050 Environmental management - Vocabulary; terms and


definitions

• ISO/TR 14062 Environmental management - Integrating


environmental aspects into product design and development

• ISO 14063 Environmental management - Environmental


communication - Guidelines and examples

• ISO 14064 Greenhouse gases; measuring, quantifying, and


reducing greenhouse gas emissions

• ISO 19011 Guidelines for auditing management systems; specifies


one audit protocol for both 14000 and 9000 series standards
together
ISO 22000
• ISO 22000 is a Food Safety Management System that can
be applied to any organization in the food chain, farm to
fork. Becoming certified to ISO 22000 allows a company to
show their customers that they have a food safety
management system in place.
• It is a quality certification that can be applied to any
organization in the food chain — from packaging machine
manufacturers to the actual food processing facilities.
• Earning ISO 22000 certification involves the following:
• Set up a documented food safety management system
to manage the processes throughout the facility.
• Establish prerequisite programs to ensure a sanitary
environment.
• Institute an HACCP (Hazard Analysis Critical Control
Point) principal, which identifies, prevents and eliminates
hazards.
ISO 22000 Series
• ISO 22000 - Food safety management systems - Requirements for
any organization in the food chain.
• ISO 22001 - Guidelines on the application of ISO 9001:2000 for the
food and drink industry (replaces: ISO 15161:2001).
• ISO/TS 22002- Prerequisite programmes on food safety—Part 1:
Food manufacturing; Part 2: Catering; Part 3: Farming; Part 4: Food
packaging manufacturing; Part 6: Feed and animal food production
• ISO TS 22003 - Food safety management systems for bodies
providing audit and certification of food safety management
systems.
• ISO TS 22004 - Food safety management systems - Guidance on
the application of ISO 22000:2005.
• ISO 22005 - Traceability in the feed and food chain - General
principles and basic requirements for system design and
implementation.
• ISO 22006 - Quality management systems - Guidance on the
application of ISO 9002:2000 for crop production.
• ISO 22000 is also used as a basis for the Food Safety Systems
Certification (FSSC) Scheme FSSC 22000. FSSC 22000 is a Global
Food Safety Initiative (GFSI) approved scheme.
Total Quality Management
• Management approach to long–term success through
customer satisfaction. In a TQM effort, all members of an
organization participate in improving processes, products,
services, and the culture in which they work.
• Total Quality Management (TQM) is a structured approach to
overall organizational management. The focus of the process
is to improve the quality of an organization's outputs, including
goods and services, through continual improvement of internal
practices.
• Stresses a commitment by management to have a continuing,
company-wide, drive toward excellence in all aspects of
products and services that are important to the customer.
– Total - Made up of the whole
– Quality - Degree of excellence a product or service provides
– Management- Act, art, or managing the whole to achieve excellance
Principles of Total Quality Management(TQM)
• Primary Responsibility for Product Quality Rests with Top
Management.
• Quality Should be customer focused and evaluated
using customer-Brand Standards.
• The production process and Work Methds Must be
Designed Consciously achieve quality conformance
• Every employee is Responsible for achieving food
product quality
• Quality cannot be inspected in to a product, so make it
right the first time
• Quality must be moinitored to identify problems quickly
and correct quality problems immediately
• The organization must strive for continuous improvement
• Companies must work with and extend TQM program to
their suppliers to ensure quality inputs
Concepts of TQM

• Continuous improvement

• Employee empowerment

• Benchmarking

• Just-in-time (JIT)

• Taguchi concepts

• Knowledge of TQM tools


Continuous improvement

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