Course Code: 3.

Projects and Operations Management

Module – 5 : QUALITY
MANAGEMENT
 Module - 5
SYLLABUS
Quality management: Introduction; Quality
characteristics of goods and services
Tools and techniques for quality improvement: check
sheets, histogram, scatter diagram, cause and effect
diagram, Pareto chart, process diagram, statistical
process control charts
Quality assurance : Total quality management (TQM)
model; Service quality, Concept of Six Sigma and its
application
Juran’s quality trilogy, Deming’s 14 principles, PDCA
cycle, Quality circles
Quality improvement and cost reduction – QC tools,
Introduction to the current ISO for Production
Management. Contribution of Quality Gurus.
2
 Quality
 Quality refers to the sum of the attributes or
properties that describe a product vz. Length, width,
colour, Specific gravity, etc
 Customers recognise that quality is an important
attribute in products and services
 Suppliers recognise quality differentiation or quality
gap between their offerings and those of competitors

3
 Factors affecting Quality (9 M’s)
 Market
 Money
 Management
 Men
 Motivation
 Materials
 Machines and mechanisation
 Modern Information methods
 Mounting product requirements

4
 Factors affecting Quality (9 M’s)
1. Market: Because of technology advancement, we could see
many new products to satisfy customer wants. At the same
time, the customer wants are also changing dynamically. So, it
is the role of companies to identify needs and then meet it
with existing technologies or by developing new technologies.
2. Money: The increased global competition necessitates huge
outlays for new equipments and process. This should be
rewarded by improved productivity. This is possible by
minimizing quality costs associated with the maintenance and
improvements of quality level.
3. Management: Because of the increased complex structure of
business organization, the quality related responsibilities lie
with persons at different levels in the organization.
4. Men: The rapid growth in technical knowledge leads to
development of human resource with different specialization.
This necessitates some groups like, system engineering group
to integrate the idea of full specialization

5
 Factors affecting Quality (9 M’s)
5. Motivation: If we fix the responsibility of achieving quality with
each individual in the organization with proper motivation
techniques, there will not be any problem in producing the designed
quality products.
6. Materials: Selection of proper materials to meet the desired
tolerance limit is also an important consideration. Quality attributes
like, surface finish, strength, diameter etc., can be obtained by
proper selection of material.
7. Machines and mechanization: In order to have quality products
which will lead to higher productivity of any organization, we need
to use advanced machines and mechanize various operations.
8. Modern information methods: The modern information methods
help in storing and retrieving needed data for manufacturing,
marketing and servicing.
9. Mounting product requirements: Product diversification to meet
customers taste leads to intricacy in design, manufacturing and
quality standards. Hence, companies should plan adequate system
to tackle all these requirements

6
 Quality Control
 Quality control is a process by which entities review
the quality of all factors involved in production
 Quality control emphasises testing of products to
uncover defects and reporting to management who
make the decision to allow or reject product release

Functions of quality control

 Acceptance function
 Preventive function
 Assurance function

7
 Quality Management
 Quality management is an act of overseeing all
activities and tasks needed to maintain desired level
of excellence
 Quality ensures that an organisation, product or
service is consistent.
 Quality management has 4 main components -
Quality Planning, Quality Control, Quality assurance
and Quality improvement
 Quality management is focused not only on the
product or service qulaity but also on the means to
achieve it.

8
 Importance of Quality Management
 Better quality means reduced costs for repairs, scrap,
rework and product warranty. Increased productivity
results in better profit and customer loyalty
 Quality results in sustained profit and the
organisation will be able to maintain persistent
quality for its products
 The 3 most frequently recognised factors that
influence a purchaser are Quality, Service and price
 The potential customer’s perception of quality can be
influence by advertising and promotional offers
 Quality involves controlling action in several areas like
– Engineering, Purchased material quality,
Manufacturing quality and after sales service

9
 Quality characteristics of goods and services
 Reliability
 Responsiveness
 Assurance
 Empathy
 Tangibles

10
 Course Code: 3.2

Projects and Operations Management

Module – 5 : QUALITY MANAGEMENT

Quality assurance : Total quality management

(TQM) model; Service quality, Concept of Six
Sigma and its application
Tools and techniques for quality improvement

12
 Check Sheets

 Check sheets facilitate systematic record keeping or

data collection observations are recorded as they
happen which reveals patterns or trends.
 Data collection through the use of a checklist is often
the first step in analysis of quality problem.
 A checklist is a form used to record the frequency of
occurrence of certain product or service characteristics
related to quality.
 The characteristics may be measurable on a
continuous scale such as weight, diameter, time or
length

13
Check Sheets

14
Histogram

15
 Scatter Diagram (Scatter Plots)

 It often indicates the relationship between two

variables.
 They are often used as follow-ups to a cause and effect
analysis to determine whether a stated cause truly does
impact the quality characteristics

16
 Pareto Chart
 Pareto charts help prioritize by arranging them in
decreasing order of importance.
 In an environment of limited resources these diagrams help
companies to decide on the order in which they should
address problems.
The Pareto analysis can be used to identify the problem in a
number of forms.
(a) Analysis of losses by material (number or past number).
(b) Analysis of losses by process i.e., classification of defects
or lot rejections in terms of the process.
(c) Analysis of losses by product family.
(d) Analysis by supplier across the entire spectrum of
purchases.
(e) Analysis by cost of the parts.
(f ) Analysis by failure mode.
17
 Pareto Chart
Example: The Fig. shows a Pareto chart of reasons for
poor quality.
Poor design will be the major reason, as indicated by
64%.
Thus, this is the problem that the manufacturing unit
should address first.
A — Poor Design
B — Defective Parts
C — Operator Error
D — Wrong Dimensions
E — Surface Abrasion
F — Machine Calibrations
G — Defective Material
18
Pareto Chart

19
 Process Flow Diagram
 It shows the sequence of events in a process. They are
used for manufacturing and service operations.
 Flow charts are often used to diagram operational
procedures to simplify the system.
 They can identify bottlenecks, redundant steps and
non-value added activities.
 A realistic flow chart can be constructed by using the
knowledge of the person who are directly involved in
the particular process.
 The flow chart can be identifies where delays can
occur

20
 Statistical Process Control Chart
 It distinguish special causes of variations from common
causes of variation.
 They are used to monitor and control process on an
ongoing basis.
 A typical control chart plots a selected quality
characteristic found from sub-group of observations as a
function of sample number.
 Characteristics such as sample average, sample range and
sample proportion of non-conforming units are plotted.
 The centre line on a control chart represents the average
value of characteristics being plotted.
 Two limits know as the upper control limit (UCL) and
lower control limit (LCL) are also shown on control charts.
 These limits are constructed so that if the process is
operating under a stable system of chance causes, the
problem of an observation falling outside these limits is
quite small.

21
 Statistical Process Control Chart
 Figure shows a generalized representation of a
control chart.
 Control chart shows the performance of a process from
two points of view.
 First, they show a snapshot of the process at the
moment the data are collected.
 Second, they show the process trend as time
progresses.
 Process trends are important because they help in
identifying the out of-control status if it actually exists.
 Also, they help to detect variations outside the normal
operational limits, and to identify the cause of
variations.
 Fig 6.7 shows a generalised representation of a control
chart.
22
Statistical Process Control Chart

23
 CAUSE AND EFFECT DIAGRAM
 It is sometimes called as Fish-bone diagram.
 It is first developed by Kaorv Ishikawa in 1943 and is
sometimes called as Ishikawa diagram.
 The diameter helps the management trace customer
complaints directly to the operations involved.
 The main quality problem is referred to Fish-head; the
major categories of potential cause structural bones
and the likely specific causes to ribs.
 It explores possible causes of problems, with the
intention being to discover the root causes.
 This diagram helps identify possible reasons for a
process to go out of control as well as possible effects
on the process
24
CAUSE AND EFFECT DIAGRAM

25
 Module - 5
SYLLABUS
Quality assurance : Total quality management
(TQM) model; Service quality, Concept of Six
Sigma and its application and contribution of
quality Gurus

26
 Quality Assurance
 Quality Assurance refers to the systematic
measurement, comparison with a standard,
monitoring of process and an associated feedback loop
that confers error prevention
 Quality Assurance includes management of the quality
of raw materials, assemblies, products and
components, services related to production and
management, production and inspection processes
Two principles included in quality assurance are
a) “ Fit for purpose” the product should be suitable for
the intended purpose
b) “Right First Time”, mistakes should be eliminated
27
 Total Quality Management (TQM)
 Total QualityManagement refers to an active approach
encompassing a company wide operating philosophy
and system for continuous improvement of quality.
 This philosophy extends beyond product quality to
Human quality
 As per Feigebaum, “Total Quality Management is an
effective system of integrating the quality
development, quality maintenance and quality
improvement efforts of various groups in an
organization so as to enable marketing, engineering,
production and service at the most economical levels
which allow for full customer satisfaction”

28
 Features of TQM
1) Customer-oriented- TQM focuses on customer
satisfaction through creation of better quality products
and services at lower costs.
2) Employee involvement and empowerment- Teams focus
on quality improvement projects and employees are
empowered to serve customers well.
3) Organization-wide- TQM involves every department or
division.
4) Continuous improvement- Quality improvement is a
never-ending journey.
5) Strategic focus- Quality is viewed as a strategic,
competitive weapon.
6) Process management- TQM adopts the concept of
prevention through process management.
7) Change in corporate culture- TQM involves the creation
of a work culture that is conducive to quality
improvement
29
 Characteristics of TQM
 TQM is useful for small and large companies alike, to improve their competitive position
in both the domestic and world marketplace. Adopting TQM as a method for conducting
company business will have a positive impact on key areas of corporate performance.
Important features of TQM that are common to many world-class quality organisations
include:

1) Leadership
 Top executives must provide active leadership to establish quality as a fundamental value
to be incorporated into the company’s management philosophy.

2) Customer Satisfaction
 Customer satisfaction is critical to remain competitive in the marketplace. Ultimately,
customer satisfaction, both internal and external, drives quality efforts. Organisations,
therefore, need to determine what customers want and must have processes in place to
meet those customer needs.

3) Corporate Culture
 Top executives need to establish a corporate culture that involves all employees in
contributing to quality improvements.

4) Integrated Activities
 Quality concepts need to be clearly articulated and thoroughly integrated throughout all
activities of the company

30
 Characteristics of TQM
5) Totality
 It implies that all areas, functions, activities, and employees are striving for optimum
quality all the time.

6) Documentation
 It is integrated people-machine-information relations that make the TQM effort happen.
Documentation helps in the dissemination of information to all persons. The
information will help persons visualising their work responsibilities and assignments in
quality activity.

7) Foundation
 A solid foundation for the whole organisational structure is imperative. If the company
is well organised then it enables the broad scope of quality activities to be properly
managed. Good organisational systems equip management and employees of the
company to come to grips with customer requirements and satisfaction.

8) Strengthen Employee Commitment

 Companies need to focus on employee involvement, teamwork and training at all levels.
The focus should maintain employee commitment to constant quality improvement.

9) Improvements
 There should be an endeavour to improve the quality activities of the business. This will
help in achieving the highest levels of quality and competitiveness in operations,
products and services.
31
 Principles of Total Quality Management
8 principles of Total Quality Management
• Customer focus
• Total employee commitment
• Process approach
• Integrated system
• Strategic and systematic approach
• Continual improvement
• Fact-based decision-making
• Communications

32
33
 Advantages of Total Quality Management

 Improves reputation faults and problems are spotted

and sorted quicker (zero defects)
 Higher employer morale – workers are motivated by
extra responsibility, team work and involvement in
decisions of TQM
 Lower costs : Decrease waste as fewer defective
products and no need for separate quality control
inspectors

34
 Disadvantages of Total Quality Management

 Internal introduction costs – training workers and

developing current production whilst being
implemented
 Benefits may not be seen for several years
 Workers may be resistant to change, may feel nless
secure in jobs

35
 Total Quality Management (TQM) Model

 When planning and implementing TQM system there

is no solution to every situation
 Each organisation is unique in terms of the culture,
management practices and the processes used to
create and deliver its products and services
 The TQM strategy will vary from organisation to
Organisation , however, a set of primary elements
should be present in some format.

36
Total Quality Management (TQM) - Generic Model

 Top management identifies TQM as one of the

organisation’s strategy
 The organisation assesses current culture, customer
satisfaction and systems
 Top management identifies core values and principles
to be used and communicates them
 A TQM master plan is developed on the basis of the
above 3 steps
 The organisation identifies and prioritises customer
demands and aligns products and services to met
those demands
 Management maps the critical processes through
which the organisation meets the customer needs 37
Total Quality Management (TQM) - Generic Model

 Management oversees the formation of teams for

process implementation efforts
 The momentum of the TQM effort is managed by the
steering committee
 Managers contribute individually to the effort through
planning, training, coaching or other methods
 Daily process management and standardisation take
place
 Progress is evaluated and the plan is revised as needed
 Constant employee awareness and feedback on status
are provided and a reward / recognition process is
established
38
 5 strategies to develop TQM Process

Strategy 1 : The TQM element approach

 The TQM element approach takes key business
processes and /or organisational units and uses the
tools of TQM to foster improvements
 Examples are – Quality Circles, statistical process
control, Quality function deployment, etc.
Strategy 2 : The Guru approach
 This approach uses the teachings and writings of
leading quality thinkers to identify and make
appropriate changes to remedy those defeciencies
 Example – Study Deming 14 points

39
 5 strategies to develop TQM Process
Strategy 3 : The TQM Organisation model approach
 Individuals or teams visit organisations that have taken a
leadership role in TQM and determine their processes and
success and adapt for their specific organisation
Strategy 4 : The Japanese Total Quality approach
 Organisations examine the detailed implementation
techniques and strategies employed by Deming Prize
winning companies and use this experience for in-house
use.
Strategy 5 : The award criteria approach
 Organisation uses the criteria of quality award – Deming
prize, European quality award or the Malcolm Baldridge
National Quality award to identify areas for improvement.
TQM implementation focusses on meeting specific award
criteria.
40
 SERVICE QUALITY - SERVQUAL

• Service quality is comparison of expectations with

performance
• A business with high service quality will meet
customer needs while remaining economically
competitive.
• Improved service quality may increase economic
competetiveness.
• This aim is achieved by understanding and improving
operational processes, identifying problems quickly
and systematically, establishing valid and reliable
service performance measures and measuring
customer satisfaction and other performance
measures.
41
 GAP MODEL OF SERVICE QUALITY

• Parasuraman, Zeithaml, and Berry developed

“The Gap Analysis Model”, which is a well known
model of service quality.
• This model shows an integrated view of the
consumer-company relationship.
• The main idea of the model is focused on the
premise that service quality is dependent on the
size and direction of the five gaps that can exist
in the service delivery process.

42
 GAP MODEL OF SERVICE QUALITY

a. Gap 1: the gap between customer expectations

and those perceived by management to be the
customer‟s expectations.
b. Gap 2: the gap between management‟s
perception of consumer expectations and the
firm‟s service quality specifications.
c. Gap 3: the gap between service quality
specifications and service delivery.
d. Gap 4: the service delivery, external
communication gap.
e. Gap 5: the perceived service quality gap, the
difference between expected and perceived
service (Parasuraman et al, 1990).
43
SERVICE QUALITY – identification of gap

44
 SERVICE QUALITY – identification of gap

Gap 1: Customer expectation – management perception gap

There are inconsistencies between customer expectations and
management perceptions of those expectations. Managers of
service organisations may not always understand what
features indicate high quality to customers, what features a
service must have in order to meet customers’ needs, and
what the level of performance on those features should be to
deliver high quality service. As a result, customers’ service
quality perceptions may be affected (Parasuraman et al.,
1985:44).

Gap 2: Management perceptions – service quality specification

gap
The gap between management perceptions of customer
expectations and the actual specifications established for a
service may occur as a result of resource constraints, market
conditions and a lack of management commitment 45
 SERVICE QUALITY – identification of gap
market conditions and a lack of management commitment
to service quality. This discrepancy may affect the service
quality perceptions of customers (Parasuraman et al.,
1985:44).

Gap 3: Service quality specifications – service delivery

gap
Although firms may have formal standards or
specifications for maintaining service quality, it may be
difficult to adhere to these standards because of
variability in employee performance (Parasuraman et al.,
1985:45). This will affect service quality from the
customer’s point of view.

46
 SERVICE QUALITY – identification of gap
Gap 4: Service delivery – external communications gap
This gap in the discrepancies between service delivery
and what the organisation promises through external
communications and/or the absence of information about
service delivery aspects may affect customer perceptions
of service quality (Parasuraman et al., 1985:46).

Gap 5: Expected service – perceived service gap

Gap 5, the most important gap, can be regarded as a
function of the first four gaps and Parasuraman et al.
(1985:46) argue that there is indeed a relationship
between Gap 5 and the first four gaps. The quality that a
customer perceives in a service is a function of the
magnitude and direction of the gap between expected
service and perceived service (Parasuraman et al.,
1985:46). 47
DIMENSIONS OF SERVICE QUALITY

48
 SIX SIGMA
• Six Sigma is a Quality program that improves
customer’s experience, lowers cost and builds better
leaders
• Six Sigma is a term used to define various techniques
and management tools designed to make business
processes more efficient and effective.
• It provides statistical tools to eliminate defects, identify
the cause of the error, and reduce the possibilities of
error.
• Thus, Six Sigma creates an environment of continuous
process improvement, enabling businesses to provide
better products and services to customers.
• It was developed by Motorola, Inc. in 1986.
49
 SIX SIGMA
• Six sigma is a term created at Motorola to describe the goal and process
used to achieve breakthrough levels of quality improvement.
• Sigma is the Greek symbol used by statisticians to refer to the six standard
deviations.
• The term six sigma refers to a measure of process variation (six standard
deviations) that translates into an error or defect rate of 3.4 parts per million.
To achieve quality performance of six sigma level, special sets of quality
improvement methodologies and statistical tools developed.
• These improvement methods and statistical tools are taught to a small group
of workmen known as six sigma champions who are assigned full-time
responsibility to define, measure, analyze, improve and control process
quality.
• They also facilitate the improvement process by removing the organizational
roadblocks encountered. Six sigma methodologies improve any existing
business process by constantly reviewing and re-tuning the process.
• To achieve this, six sigma uses a methodology known as DMAIC (Define
opportunities, Measure performance, Analyse opportunity, Improve
performance, Control performance). This six sigma process is also called
DMAIC process and DMADV process ( Define, measure, Analyse, Improve,
Control) 50
 METHOD & IMPLEMENTATION APPROACH OF
SIX SIGMA – DMAIC PHASES
 Define This step involves determining benchmarks, determining
availability and reliability requirements, getting customer
commitments and mapping the flow process.
 Measure This step involves development of failure measurement
techniques and tools, data collection process, compilation and
display of data.
 Analysis This step involves checking and verifying the data and
drawing conclusions from data. It also involves determining
improvement opportunities, finding root causes and map causes.
 Improve This step involves creating model equipment and
maintenance process, total maintenance plan and schedule and
implementing those plans and schedule.
 Control This step involves monitoring the improved programme.
Monitor improves performance and assesses effectiveness and
will make necessary adjustments for the deviation if exists.
51
 APPLICATIONS OF SIX SIGMA

 Six Sigma consists of statistical methods for systematically

analysing process, reduce process variations to support
continual improvement activities
 Six Sigma tool box of Statistical process control and
statistical techniques are being used by some companies to
assess process quality and waste areas to drive productivity
& Quality for lean manufacturing
 Six Sigma quality level serves as an indicator of how often
defects are likely to occur in processes, parts or products
 Includes methods for implementing and maintaining
performance of process improvements
 Helps organisation to correctly diagnose the root causes of
performance gaps and variability and apply the most
appropriate tools and solutions in addressing those gaps

52
 JURAN’S QUALITY TRILOGY
 Joseph Juran explained his model of quality improvement
on the basis of 3 Universal processes popularly named as
Juran Trilogy
Quality Planning
“Quality does not happen by accident; it must be planned.”
Quality planning is the structured process of designing
products and services to meet new goals and ensure that
customer needs are met.
 Quality Planning Steps:
 Establish the project.
 Identify customers.
 Discover the customer’s needs.
 Develop the product.
 Develop the process.
 Develop the controls and transfer to Operations.

53
 JURAN’S QUALITY TRILOGY
Quality Control
Quality control is a universal managerial process for
conducting operations to provide stability, to prevent
adverse change, and to "maintain the status quo." Quality
control can also be described as "a process for meeting the
established goals by evaluating and comparing actual
performance and planned performance and taking action
on the difference."
 The quality control process:
 Choose a control subject.
 Establish Measurement.
 Establish Standards of Performance.
 Measure Actual Performance.
 Compare to Standards (interpret the difference).
 Act on the difference.
54
 JURAN’S QUALITY TRILOGY
Quality Improvement
"All improvement takes place project by project."
Quality improvement is the process of creating
breakthrough levels of performance by eliminating
wastes and defects to reduce the cost of poor quality.
 Steps to Quality Improvement:
 Prove the need for improvement.
 Identify the improvement projects.
 Establish project improvement teams.
 Provide project teams with resources.

55
 DEMING’S 14 PRINCIPLES
W, Edward’s Deming offered 14 key principles for management to follow for
significantly improving the effectiveness of a business or an organisation

1. Create Constancy of Purpose

This point emphasizes the importance of long-term planning and vision.
Clear, consistent purpose can drive innovation and improvement. It’s about
focusing on becoming competitive, staying in business, and providing jobs, rather
than short-term profits.
2. Adopt the New Philosophy
This principle calls for a fundamental shift in thinking. It’s about embracing quality
as a core value, not just a department or initiative.
3. Cease Dependence on Inspection
Deming argued that quality should be built into the process, not inspected after the
fact.
This aligns closely with methodologies emphasized in six sigma certification
programs, which focus on building quality into the process through improvement
and statistical process control, rather than relying solely on inspection.

By focusing on prevention rather than detection, we can significantly reduce

defects and improve overall quality, a skillset developed through root cause
analysis training to identify and address process inefficiencies at their source. 56
 DEMING’S 14 PRINCIPLES
4. End the Practice of Awarding Business on Price Alone
This point stresses the importance of building long-term relationships with suppliers
based on quality and trust, not just price.
This approach can lead to more consistent quality and lower total costs in the long
run.
5. Improve Constantly and Forever
Continuous improvement is at the heart of both Deming’s philosophy and Six
Sigma , and earning a six sigma green belt certification equips professionals with
the tools to consistently enhance processes and products.
It’s about never being satisfied with the status quo and always looking for ways to
enhance processes and products.
6. Institute Training on the Job
Effective training is crucial for quality improvement . This can range from
foundational awareness programs, like those covered in Six Sigma White Belt
certification or a Lean Introduction , to more involved, job-specific training to
ensure everyone understands their role in the quality system.
Well-designed, job-specific training can dramatically improve performance and
reduce errors.
7. Institute Leadership
Deming emphasized that managers should be leaders, not just supervisors.
This involves understanding the work being done, providing support, and fostering
57
an environment of continuous learning and improvement
 DEMING’S 14 PRINCIPLES
8. Drive Out Fear
Fear stifles innovation and honest communication.
Creating a culture where employees feel safe to speak up and take calculated risks
is essential for true quality improvement.

9. Break Down Barriers Between Departments

Silos can be a major obstacle to quality improvement. In my work on cross-
functional projects, breaking down these barriers can lead to better communication,
more efficient processes, and higher quality outputs, principles that are central to
the fundamentals of lean and support cross-functional collaboration.

10. Eliminate Slogans and Exhortations

Deming argued that slogans without substantive support can be demoralizing.
Instead, focus on providing the tools and resources necessary for employees to do
their best work.

11. Eliminate arbitrary numerical targets

Arbitrary quotas can lead to poor quality and low morale. Instead, focus on
improving processes and providing the support necessary to achieve high-quality
results.
58
 DEMING’S 14 PRINCIPLES

12. Remove Barriers to Pride of Workmanship

Employees should be able to take pride in their work. This means removing
obstacles that prevent them from doing their best, whether it’s outdated equipment,
poor training, or ineffective management practices.

13. Institute a Vigorous Program of Education and Self-improvement

Continuous learning is essential in this business environment.
Ongoing education can drive innovation and improve quality.

14. Put Everybody in the Company to Work Accomplishing the

Transformation
Quality improvement is everyone’s responsibility.
This point emphasizes the need for a company-wide commitment to transformation
and continuous improvement .

59
 PDCA CYCLE
• PDCA – Plan-Do-Check-Act or Plan-Do-Check-Adjust

• It is an iterative 4 step management method used in business

for control and continuous improvement of processes and
products

• It is also known as Deming Circle/cycle/wheel,Shewart cycle,

control cycle/circle or Plan-Do-Study-Act.

• Another version is OPDCA – O- Observation or Grasp the

current situation

60
CONTINUOUS QUALITY IMPROVEMENT WITH PDCA

61
 CONTINUOUS QUALITY IMPROVEMENT WITH PDCA
• Plan
Establish the objectives and processes necessary to deliver results in
accordance with the expected output (the target or goals). By making the
expected output the focus, it differs from other techniques in that the
completeness and accuracy of the specification is also part of the improvement.
• Do
Implement the new processes, often on a small scale if possible, to test
possible effects. It is important to collect data for charting and analysis for the
following "CHECK" step.
• Check
Measure the new processes and compare the results (collected in "DO" above)
against the expected results (targets or goals from the "PLAN") to ascertain any
differences. Charting data can make this much easier to see trends in order to
convert the collected data into information. Information is what you need for the
next step "ACT".
• Act
Analyze the differences to determine their cause. Each will be part of either one
or more of the PD-C-A steps. Determine where to apply changes that will
include improvement. When a pass through these four steps does not result in
the need to improve, refine the scope to which PDCA is applied until there is a
plan that involves improvement.
62
 QUALITY CIRCLES

• Quality Circles is a group of employees whose job is to

identify the problems, formulate solutions and present their
results to the management with suggestions for
implementation

• It is a philosophy of worker’s direct involvement in solving

problems that affect their work, work output and workplace

63
 QUALITY CIRCLES

•The quality circles begun in Japan in 1960s. The concept

of quality circles is based on the participating style of
management. It assumes that productivity will improve
through an uplift of morale and motivations which are in turn
achieved through consultation and discussion in informal
groups. One organizational mechanism for worker
participation in quality is the quality circle. It is typically an
informal group of people that consists of operators,
supervisors, managers and so on who get together to
improve ways to make the product or deliver the service.

• According to Juran, quality circle defined as “a group of

work force level people, usually from within one department,
who volunteer to meet weekly (on company time) to
address quality problems that occur within their
department.”
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 QUALITY CIRCLES

• Zero Defects
Zero Defects refer to Zero breakdown, zero inventories, Zer
budgeting, Zero Papers and Zero delays. This philosophy is
based on doing it right the first time and thus eliminating
defects

• Inspection
Inspection is a process of measuring, examining, testing,
gauging or comparing one or more units of the product with
respect to applicable specifications against standards

65
 INTERNATIONAL STANDARDS ORGANISATION (ISO)

• ISO stands for International Organization for

Standardization.

• It is an international body, which consists of

representatives from more than 90 countries.

• The national standard bodies of these countries are the

members of this organization. Bureau of Indian Standards
(BIS) are the Indian representative to ISO, ISO and
International Electro Technical Commission (IEC)) operate
jointly as a single system.

• These are non-governmental organizations, which exist to

provide common standards on international trade of goods
and services.
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 INTERNATIONAL STANDARDS ORGANISATION (ISO)

• ISO 9000 standards expect firms to have a quality manual

that meets ISO guidelines, documents, quality procedures
and job instructions, and verification of compliance by third-
party auditors.
• ISO 9000 series has five international standards on quality
managements.
They are:
•1. ISO 9000 — Quality management and Quality
assurance standards
•2. ISO 9001 — Quality systems: Quality in design
•3. ISO 9002 — Quality systems: Production and Installation
•4. ISO 9003 — Quality systems: Final inspection and test
•5. ISO 9004 — Quality management and systems

67
 Benefits of ISO 9000 Series
ISO 9000 series provides several tangible and intangible benefits
which are listed below:
1. This gives competitive advantage in the global market.
2. Consistency in quality, since ISO helps in detecting non-
conformity early which makes it possible to take corrective
action.
3. Documentation of quality procedures adds clarity to quality
system.
4. ISO 9000 ensures adequate and regular quality training for all
members of the organization.
5. ISO helps the customers to have cost effective purchase
procedure.
6. The customers while making purchases from companies with
ISO certificate need not spend much on inspection and
testing. This will reduce the quality cost and lead-time.
7. This will help in increasing productivity.
8. This will aid to improved morale and involvement of workers.
9. The level of job satisfaction would be more.
68
 Steps in ISO 9000 Registration
1. Selection of appropriate standard from ISO 9001, ISO
9002 and ISO 9003 using the guidelines given in ISO
9000.
2. Preparation of quality manual to cover all the elements in
the selected model.
3. Preparation of procedures and shop floor instructions
which are used at the time of implementing the system.
Also document these items.
4. Self-auditing to check compliance of the selected model.
5. Selection of a registrar and making application to obtain
certificate for the selected model. A registrar is an
independent body with knowledge and experience to
evaluate any one of the three models of the company’s
quality system (ISO 9002). Registrars are approved and
certified by acridities.

69
 ISO 14000 Series

1. The ISO 14000 series of environmental management

standards are intended to assist organizations
manage the environmental effect of their business
practices. The ISO 14000 series is similar to the ISO
9000 series published in 1987. The purpose of the
ISO 9000 series is to encourage organizations to
institute quality assurance management programs.
Although ISO 9000 deals with the overall
management of an organization and ISO 14000 deals
with the management of the environmental effects
of an organization, both standards are concerned
with processes, and there is talk of combining the
two series into one.

70
 ISO 14000 Series
 The environmental standards of ISO 14000 deal with how a company
manages the environment inside its facilities and the immediate
outside environment.
 However, the standards also call for analysis of the entire life cycle of
a product, from raw material to eventual disposal. These standards
do not mandate a particular level of pollution or performance, but
focus on awareness of the processes and procedures that can effect
the environment. It should be noted that adherence to the ISO 14000
standards does not in anyway release a company from any national or
local regulations regarding specific performance issues regarding the
environment.
Some of the standards in the ISO 14000 series are:
 ISO 14001—Specification of Environmental Management Systems
 ISO 14004—Guideline Standard
 ISO 14010 through ISO 14015—Environmental Auditing and Related
Activities
 ISO 14020 through ISO 14024—Environmental Labelling
 ISO 14031 through ISO 14032—Environmental Performance
Evaluation
 ISO 14040 through ISO 14043—Life Cycle Assessment
 ISO 14050—Terms and Definitions
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 Benefits of ISO 14000 Series
 The benefits of acquiring ISO certification go beyond the
satisfaction of doing a good deed. Adhering to the standard
may result in better conformance to environmental
regulations, greater marketability, better use of resources,
higher quality goods and services, increased levels of safety,
improved image and increased profits.
 The environmental awareness and the documentation that are
required by the ISO 14000 standards assist a company in
conforming to environmental regulations. This means that a
company, by diligently adhering to the standard, is less likely
to violate environmental regulations and is always ready for
inspection by a regulatory agency. In addition, the certification
and documentation may aid a company in acquiring capital, in
defending itself during environmental litigation and in
receiving insurance or permits.
 A wider market for a company’s goods and services may result
from certification. Many corporations and governments will be
looking for suppliers that are ISO 14000 certified in order to
maintain their own certification and environment-friendly
image.
72
 Benefits of ISO 14000 Series
 Producers of consumer goods may find that many
consumers not only try to purchase goods from
environment-friendly companies, but will spend a little
more if they feel they are helping the environment. In
order to reap this benefit, a company must make their
environmental efforts known through advertising and
labelling.
 The process analyses that go along with ISO 14000
certification may result in streamlining processes and
more efficient use of resources and raw materials and
subsequently reduce a company’s costs.
 Reducing the amount of potentially dangerous
substances in an end product may result in less use of
dangerous chemicals in a plant. This leads to a safer
internal environment for employees and the possibility of
reduced insurance premiums. Improved employee
morale may result when employees feel that the
workplace is safer and they are contributing to the
environmental effort.
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Contribution of Quality Gurus

74
 Contribution of Quality Gurus
W. Edwards Deming : One of the pioneers of quality
management, Deming is known for his work in Japan after World
War II, where he helped Japanese companies improve their
quality and productivity. He is best known for his "14 Points for
Management," which outline the key principles of quality
management and his emphasis on the importance of statistical
process contro and continuous improvement.
Joseph M. Juran: He is considered one of the pioneers of the
modern quality managementmovement and is known for his
development of the "Juran Trilogy," which consists of three
critical components of quality management: quality planning,
quality control, and quality improvement. He is also credited with
introducing the Pareto principle in the quality field, which states
that 80% of the effects come from 20% of the causes. Juran
was also the author of several books on quality management,
which continue to be used as reference works in the field,
including Juran's Quality Handbook. 75
 Contribution of Quality Gurus
Philip B. Crosby: Crosby is known for emphasizing the
importance of prevention over inspection in quality
management. He introduced the concept of "zero defects,"
which aims to eliminate defects and errors in a process or
product.
Crosby is also known for his Four Absolutes of Quality:
1- The definition of quality is conformance to requirements.
2- The system of quality is prevention.
3- The performance standard is zero defects.
4- The measurement of quality is the price of non-
conformance. Crosby also introduced the idea of "quality is
free," which is the notion that the cost of preventing defects
is always lower than the cost of dealing with defects after
they occur.

76
 Contribution of Quality Gurus
Kaoru Ishikawa: Ishikawais a Japanese quality management
expert known for developing the cause and effect diagram, also
known as the "Ishikawa diagram" or "fishbone diagram." This tool is
used to identify the root causes of a problem and is a critical tool
in root cause analysis. Ishikawa is also known for emphasizing the
importance of involving all employees in the quality management
process. Ishikawa also introduced the concept of "total quality
control," involving all employees in the quality control process and
using data and statistical analysis to drive continuous improvement.
Shigeo Shingo- Shigeo Shingowas a Japanese industrial engineer
and business consultant. Shingo is known for his contributions
to lean manufacturing, including developing the "Toyota Production
System." He emphasized the importance of eliminating waste and
increasing efficiency in the production process. Shingo is also
credited with introducing the concept of "poka-yoke," which prevents
defects in a product or process by designing it so that mistakes are
difficult or impossible to make. He also developed the Single Minute
Exchange of Die (SMED) concept. 77
 Contribution of Quality Gurus
Armand V. Feigenbaum - Feigenbaum is known for developing
the concept of total quality control, which focuses on integrating
all aspects of an organization's operations to achieve quality. He
also introduced the idea of the "cost of quality" as a way to
measure the impact of poor quality on an organization.

Walter Shewhart - Walter Shewhart is credited with developing

the concept of "statistical process control," which involves using
statistical methods to monitor and control manufacturing
processes to produce goods of consistent quality. Shewhart also
introduced the idea of "control charts," which are graphical tools
used to monitor process performance over time and identify
when a process is out of control. His ideas have been widely
adopted by industries worldwide and have played a significant
role in developing modern quality control techniques.

78
 Contribution of Quality Gurus
Taiichi Ohno - Taiichi Ohno was a Japanese industrial engineer and
businessman known for contributing to the Toyota Production System
(TPS) development. Ohno is considered the father of the TPS, a
manufacturing methodology focusing on maximizing efficiency and
minimizing waste. He is credited with developing the "just-in-time"
production method, which involves producing only the amount of
goods needed at a given time, and the "kanban" system. This visual
signalling system helps coordinate the flow of materials within a
factory. Ohno's ideas have been widely adopted by companies
worldwide and have helped to transform the way goods are produced
Genichi Taguchi - Taguchi was a Japanese engineer and quality
control expert known for his contributions to the statistics and quality
control field. He developed the concept of "loss function," which
measures the deviation of a product from its target specification. He
also introduced the idea of using "robust design" to create products
insensitive to variations in manufacturing processes. Taguchi's
methods are widely used worldwide to improve the quality of products
and reduce manufacturing costs. 79