Quality Management

Definitions

** Quality

 It is fitness for use.

 It is the degree of appropriateness of a product and its ability to satisfy a certain need.
 It is the totality of features and characteristics of a product, bearing on its ability to satisfy customer
stated and implied needs.
**Quality control

 It is a technique aiming at checking if products being manufactured conform to purpose or agreed

standards.
 quality control refers to techniques, processes or policies practiced by a firm to maintain a desirable
level of quality of operations or products so that during design, production or servicing both work
and materials are within limits that will produce the desired product performance and reliability.
*is based on the inspection of the product or a sample of products

Objectives of quality control

*to make sure that the product:
1. will satisfy the customer
2. will work under the conditions it experiences
3. will operate in the way the customer wants and the publicity claims
4. can be produced by the organisation within cost constraints
5. can be repaired in the time claimed on the majority of occasions
6. satisfies health and safety requirements

Quality control stages

*the stages are:
1. Prevention – this is when the design of the product follows the requirements of the customer and allows
for
accurate productions – quality should be ‘designed into’ a product.
2. Inspection – refers to inspecting products at the end of the production process – some checking can take
place at different stages of the process but the emphasis is on quality of the finished product (it is very
expensive)
3. Correction and improvement – refers to correction of faulty products as well as the process that caused the
fault in the first place – the latter will improve quality in the future.

Benefits of quality control

1. reduces defective work which helps to improve the utilisation of machines and labour and increase
profitability

2. prevents further waste of labour and machine time on work that is identified as defective
3. acts as a necessary checking on the quality of piece-rate work
4. maintains a level of quality necessary to satisfy customers and to meet the competition of rivals
5. assures that parts intended to be interchangeable are manufactured such that they are indeed
interchangeable.

Weaknesses of inspection
*involves quality control inspectors who check on the work of workers
1. looks for problems hence it is negative in culture – this may cause resentment amongst workers
2. the job of inspection can be tedious, so inspectors become demotivated and may not carry out their tasks
efficiently
3. if checking only takes place at specific points in the process then faulty products may pass through several

stages before being picked which may consume a lot of time trying to locate the source of the fault
4. it takes away from the workers the responsibility for quality and they will feel that it is not part of their
task to ensure that it is maintained – this can be demotivating leading to lower quality output.
Aspects of quality
(i) Quality of design :- appropriateness of product design to customer requirements, considered in
product design and specifications
(ii) Quality of conformance:- consistence of product to laid down specifications.
Quality Philosophy

 Quality is secondary to profits, that is, there is no relationship between quality and profits.
 Higher quality means higher costs.
 The major aim of quality control is to minimize quality defects.
 Quality control is a problem of quality controllers in the organization.
 Most quality problems are a result of poor workmanship.
 Quality control problems must be identified and reduced.
Advantages of producing quality products
 Savings on costs of customer complains eg compensation, loss of goodwill, and legal costs of
product liability.
 Easier to create brand loyalty(goodwill) due to consistency)
 Longer product life cycle due to sustained customer interest in the product.
 Less advertising because the brand has a quality image through performance.
 An opportunity for premium pricing hence higher profit margins.
 Lower costs due to significant elimination of scrap or rework of defective finished goods.
New Philosophy

 Quality is the best way to ensure profits.

 Higher quality means low costs.
 Zero quality defects.
 Everyone is a quality controller (total quality management).
 Most quality problems are a result of poor management.
Quality Control Techniques

1. Quality Circles

 It is a group of workers from different departments who meet at prescribed times or intervals in order
to discuss issues related to quality.
 It is made up of at least six workers and above.
 Workers in the group participate in discussions and contribute.
 Measures which can be used to improve quality.
 Individuals constituting quality circles contribute in identifying problems of poor quality and
solutions to the problems.
Advantages of Quality Circles
 1. Quality circles increase the level of employee morale and motivation since there is workers
participation.
2. It leads to the improvement in quality of products.
3. They contribute in the minimization of costs incurred in production as workers find solutions to the
problems.
4. Quality circles foster the existence of good relations among employees.
5. Quality circles create effective communication in the organization as different departments are
involved.
Disadvantages of Quality Circles

1. They may consume discussion time meaning it is time-consuming.

2. Quality circles may be expensive to run as they may increase costs since they need to be motivated
financially.
3. Quality circles require some resources, meaning for quality circles to continue to exist managers
must supply group members with necessary resources.
4. Quality circles may be a source of demotivation to workers whose ideas are neglected.
2. Quality Assurance

 It is the setting and agreeing on quality standards in the firm and ensuring that customer satisfaction
is achieved.
 It is a quality control technique whereby quality is guaranteed before production of goods.(pro
active)
 Quality of goods is improved by screening raw materials, machinery and other necessary production
inputs.
 Only inputs that meet the expected standards in terms of quality are channelled into the production
system.( feed forward approach)
 Defective inputs are eliminated to make sure high quality raw materials are used.( getting it right the
first time and every time)
 Quality assurance enables the organization to improve quality through productive approach.
Advantages of Quality Assurance

1. High quality products are produced meaning that screening of raw materials assures the provision of
high quality.
2. It ensures that resources are wisely utilized therefore efficient and effective resources allocation.
3. Unnecessary costs are kept minimum levels.
4. The idea is that inspecting inputs ensures that work in progress is of expected quality.
Disadvantages of Quality Assurance

1. Quality assurance requires other complementary techniques.

2. It cannot be used on its own because it focuses on inputs alone. It needs to be complimented with
quality checks at every stage of the production process.
3. It is a time-consuming process.
4. Quality assurance requires a change of organizational culture. In other words, it fosters a culture of
quality.
5. The method is difficult to apply in situations where a company is operating on a large-scale basis
where it produces high volumes of output.
6. It increases workload on subordinates meaning that besides performing their tasks workers also need
to accept the task of inspecting quality.
3. Total Quality Management (TQM)
* it is the state in the organisation in which all the activities of all functions are designed and carried out in
such a way that external customer requirements are met while reducing internal time and cost and
enhancing the total workplace climate

 It believes that quality is everyone’s responsibility in an organization.( total commitment of all)

 It is a technique with the purpose of ensuring high quality output.( zero defects)
 Total quality management says quality starts with the consumers. ( internal customer concept)
 Total quality management assures that quality can be improved on a gradual basis (continuous
improvement).
 The main idea is that everyone in the organization is to participate in the improvement of the quality
of goods from management to the lower level workers. ( quality circles and empowerment)
Requirements for success
1. leadership from the top
2. patience to carry through a long-term strategy
3. communication skills
4. a change in culture (making quality everyone’s responsibility)
5. a recognition of quality in all aspects of management
6. recognition and reward

Why TQM might fail

1. lack of personal involvement by management
2. lack of patience (it must not be seen as a quick fix)
3. failure to empower employees
4. failure to bring about necessary change in culture
5. concentrating on reducing defects rather than serving the customer
6. lack of vision and planning
7. a failure of leadership

Advantages of Total Quality Management

1. It results in the production of high quality output, leading to improved customer satisfaction.
2. It is good in building the corporate image of the organization.
3. It improves communication flow within the organization. This is because there is involvement of all
departments.
4. Total quality management can also be used to improve employees’ morale and motivation.
5. It results in reduced costs through encouraging efficient and effective resource utilization ( getting it
right the first time and every time).
Disadvantages of Total Quality Management

1. The change in terms of quality takes a long period, meaning that the total quality management takes
a long time to improve quality.
2. Total quality management requires total change in organizational culture, which might result in
resistance to change.
3. Total quality management is difficult to implement in situations where there is poor industrial
relations.
4. Total quality management is very much laborious and increases workload on management.
5. Total quality management is more of an organization policy rather than a technique to quality
control.
4. Zero Defects
  It is a quality controlling technique that simply focuses on the output relative to quality.
 Zero defects means zero tolerance to any faulty or defective product. (getting it right the first time..)
 It involves inspecting the inputs in order to eliminate anything below standard.(internal customer
concept)
 Zero defects approach enables managers to set an expected output level that workers must achieve.
 If workers achieve the expected output, they can be given some rewards and this motivates workers.
Advantages of Zero Defects

1. It leads to improvement of quality of goods received by the customer.

2. It is a motivational tool because financial rewards are paid to the workers.
3. Zero defects approach increases workers commitment hence reduced absenteeism and labor turnover.
4. It leads to increased customer satisfaction since high quality products are always distributed.
Disadvantages of Zero Defects

1. It is very expensive for the firm especially the provision of financial rewards, which can lead to excess
cash outflows.
2. It is very difficult to inspect every unit of output thus, there are also high chances of defective products.
3. It is unrealistic to imagine the production of 100% output without any faulty products.
4. Zero defects approach usually works where there are strategies to make sure that quality is not
compromised.
5. It also requires complimentary techniques to monitor inputs and work in progress to make sure that
quality is guaranteed.
5. Quality Standards
 It involves the use of quality standard as a methodology of improving of the product.
 The organization adopts the expected quality standards and work towards meeting the standards for
its products.
 This method is adopted by organizations producing food items and other products that affect the
health of the consumers, for example, in Zimbabwe, we have the Standards Association of
Zimbabwe (SAZ).
 If the products are approved by the SAZ, the company gets a certificate and its products are said to
be of high quality.
 These quality standards are usually monitored globally by International Standards Association eg

ISO 9000 Quality Standards

ISO-9000S

is a Quality Management model comprised of 20 sets of quality system requirements known as elements.
The model was initially designed for the manufacturing sector and affects virtually every aspect of a
business.

ISO 9000 is actually divided into five standards:

ISO 9000-1 - Guidelines for Selection and Use
ISO 9001 - Model for Quality Assurance in Design/Development, Production, Installation,
and Servicing
ISO 9002 - Model for Quality Assurance in Production, Servicing, and Installation
ISO 9003 - Model for Quality Assurance in Final Inspection and Test
ISO 9004-2 - Quality Management and Quality System Elements - Guidelines

Your company would be registered to 9001, 9002 or 9003 depending on your type of
business. The others are, as they state, guidelines.
What you must remember is that ISO-9000 is a model for a management system of quality
assurance. In other words, the emphasis is on your company's management, first and
always. These are not standards about the quality assurance department.

It's premise is simple: SAY what you do, DO what you say.

The results are powerful: it changes any organization from a reactive, "respond to problems
as they arise" system to a pro-active, preventative system.

Elements of a Management System

Benefits of ISO

There has been so much written about the benefits of having ISO-9000 registration, there isn't enough space
on this website to repeat it all. We will attempt to list some of the basic benefits here.

1. ISO-9000 forces an organization to focus on "how they do business". Each procedure and work
instruction must be documented and thus, becomes the springboard for Continuous Improvement.

2. Documented processes are the basis for repetition and help eliminate variation within
the process. As variation is eliminated, efficiency improves. As efficiency improves, the
cost of quality is reduced.
3. With the development of solid Corrective and Preventative measures, permanent,
company-wide solutions to quality problems are found.
4. Employee morale is increased as they are asked to take control of their processes and
document their work processes.
5. Customer satisfaction, and more importantly customer loyalty, grows. As a company
transforms from a reactive organization to a pro-active, preventative organization, it
becomes a company people want to do business with.
6. Reduced problems resulting from increased employee participation, involvement,
awareness and systematic employee training.
7. Better products and services result from Continuous Improvement processes.
8. Fosters the understanding that quality, in and of itself, is not limited to a quality
department but is everyone's responsibility.
9. Improved profit levels result as productivity improves and rework costs are reduced.
10. Improved communications both internally and externally which improves quality,
efficiency, on time delivery and customer/supplier relations.

Advantages of Quality Standards

1. It helps the organization to produce products of higher quality standards.

2. Quality standards are important in boosting customer loyalty.
3. It enables the organization to enjoy external benefits, for example, if the company achieves expected
quality standards.
Disadvantages of Quality Standards

1. Quality standards increase costs to the organization meaning that for quality to be improved, there is
need to cultivate a lot of capital.
2. Some quality standards are too unrealistic and may be difficult to achieve and this may be a source of
demotivation to the workforce.
6. Production Engineering
 It is a quality management technique that involves implementation of engineering strategy.
 It involves the employment of specialized engineers who are well-trained, experienced and highly
educated in working with the machinery and equipment.
 Specialist engineers are responsible for the installation of the equipment.
 The idea is to help in the provision of higher quality products by ensuring that machinery and
equipment are effectively functioning.
Advantages of Production Engineering

1. It leads to the provision of high quality products.

2. Production engineering ensures that effective and efficient machines are used.
3. It facilitates wise use of resources, for example, proper installation and use of equipment helps to
minimize resource wastages.
Disadvantages of Production Engineering

1. Engineers are very expensive to hire therefore the firm experiences high labor costs.
2. It is very difficult and expensive to establish because it requires a lot of capital and other resources.
3. It requires other complimentary techniques so that high quality products are produced.
4. The method is not easily available to small organizations because of lack of capital.

7. Benchmarking
*is setting competitive performance standards against which progress can be measured
*it is seeking to identify the best practice used by competitors in any aspect of production and consumer
service and then setting performance standards based on this.

Types of benchmarking
1. competitive benchmarking – involves comparing the performance of an organisation’s products and
processes with those of a key competitor
2. internal benchmarking – involves comparisons between one part of the organisation with similar practices
in other parts of the same organization
3. functional benchmarking – is the direct comparison of a function in two or more organisations, which
may, or may not be, in the same industry
4. generic benchmarking – involves a comparison with the practices of world-class organisations

**Many benchmarking exercises focus on:

(a) customer service
(b) product service
(c) core business processes
(d) support processes
(e) employee performance
(f) supplier performance
(g) technology and
(h) new product development

Stages in the benchmarking process

1. identify the aspects of the business to benchmarked
2. measure performance in these areas
3. identify the firms in the industry that are considered to be the best
4. use comparative data from the best firms to establish the main weaknesses in the business
5. set standards for improvement
6. change processes to achieve the standards set
7. re-measurement
NB*Benchmarking is not a one-off exercise and to be effective it should be a continuous process to achieve
long-term improvements in productivity and quality.

Advantages of Benchmarking

1. It is a quick way of solving problems rather than the firm trying to do so without external
comparisons.
2. It helps in increasing global competitiveness
3. Staff involvement generates quality ideas and increases motivation.
4. It reduces the gap between performance and standards, meaning that benchmarks help in improving
the overall performance.
5. It helps in improving the image of the organization.
Disadvantages of Benchmarking

1. It might be difficult to apply practically since it involves research into other organizations’ strategies.
2. The problem is that competitors may not describe their competitive strategies.
3. Benchmarking may require a change in culture of the organization and this may be resisted.
4. It might be a source of demotivation if some workers fail to achieve the set standards.
5. It discourages initiative by promoting copying.
6. Benchmarking cannot be used in isolation but must be used with other methods.
8. Continuous Improvement (Kaizen)
 It is an approach to waste minimization that emphasizes on making gradual changes in the
minimization of wastages and quality maximization.
– is the concept of continuous improvement in production processes rather than one-off leaps forward in
productivity
– the main philosophy behind Kaizen is that all workers have something to contribute to improving the
 way their business operates and the way the product is made .
– it suggests that, in many cases, workers actually know more than managers about how a job should be
done or how productivity might be improved.
– since they work at a task every day, they are better positioned to know how to change it to improve
either quality or productivity than a manager who perhaps has no hands-on experience of production at
all .

– the concept also believes that a series of small improvements, suggested by staff teams, can, over time,
amount to as big an improvement in efficiency as a major new investment.

Conditions necessary for Kaizen

1. Management culture must be directed towards involving staff and giving their views and ideas
importance
– managers must accept that in many areas of the business work experience will count for as much as
theoretical knowledge.
2. Team working – suggesting and discussing new ideas to improve quality or productivity is best done in
groups
– Kaizen groups meet regularly (with sufficient time and training) to discuss problems that they have
identified and recommendations for change may be put forward to managers, or each group is empowered to
put their own ideas into practice.

3. Empowerment – by giving each Kaizen group the power to take decisions regarding workplace
improvements, this will allow speedier introduction of new ideas and motivate staff to come up with even
more ideas – this is closely linked to Herzberg and the concept of job enrichment

4. All staff should be involved – this is mainly meant to avoid bottlenecks, which might arise if other parts of
the organisation are not involved.

Limitations of the Kaizen approach

1. some changes cannot be introduced gradually and may need a radical and expensive solution
2. there may be real resistance from senior managers to such a programme due to their existing culture

– Kaizen only works effectively if there is genuine empowerment of the groups involved – thus,
authoritarian managers would find this impossible to accept.

3. in the short run, the firm incurs tangible costs such as training to organise meetings and lost output as a
result of meeting time.

Advantages of Kaizen Approach

1. It increases worker morale and motivation due to the presence of participation.

2. It improves the quality of the products.
3. It enables the organization to maximize profits and sales.
4. There is minimum resource wastage.
5. The organization can become highly competitive.
Disadvantages of Kaizen Approach

1. It is time-consuming since it involves everyone’s participation.

2. It is expensive since it requires training of personnel, and strong financial support.
3. It may result in high levels of conflicts.
4. It is laborious/ time demanding.
5. It cannot be used on its own but needs to be combined with other techniques