Quality Management

Principles

1
Quality Planning
⚫ Quality planning is a strategic activity
⚫ Quality planning involves
⚫ identifying customers, both external and those that
operate internal to the business, and identifying their
needs (this is sometimes called listening to the voice
of the customer [VOC]).
⚫ Design and develop products or services that meet or
exceed customer expectations.
⚫ Determine how these products and services will be
realized.
⚫ Planning for quality improvement on a specific,
systematic basis is also a vital part of this process.
Quality Planning

⚫ A quality plan is a document, or several

documents, that together specify quality
standards, practices, resources,
specifications, and the sequence of activities
relevant to a particular product, service,
project, or contract.

3
Quality Planning
Examples of the elements in the quality
planning document
• Quality policies
• Quality goals
• Deployment of goals
• Plans to meet goals
• Organizational structure
• Resources
• Measurement feedback
• Review of progress
• Training 4
Quality Assurance
⚫ Quality assurance is the set of activities that ensures that quality levels of
products and services are properly maintained and that supplier and
customer quality issues are properly resolved.
⚫ Quality system documentation involves four components.
⚫ Policy generally deals with what is to be done and why.

⚫ Procedures focus on the methods and personnel that will implement

policy.
⚫ Work instructions and specifications are usually product-, department-,
tool-, or machine-oriented.
⚫ Records are a way of documenting the policies, procedures, and work
instructions that have been followed.
⚫ Development, maintenance, and control of documentation are important
quality assurance functions.
“Say what you are going to do, and do what you say.”
Quality Assurance
⚫ All those planned or systematic actions
necessary to provide adequate confidence that
a product or service will satisfy given
requirements for quality.
⚫ Normaly it will requires proof and evidence.
Example ISO 9000 certification
⚫ Need systems and procedures to ensure
consistency in methods for producing products
⚫ Sometimes the terms quality control and
quality assurance are used interchangeably
6
Quality Control
⚫ Quality control involve the set of activities used to ensure
that the products and services meet requirements.
⚫ Variability is often a major source of poor quality and
statistical techniques, including SPC and designed
experiments, are the major tools of quality control and
improvement.
⚫ Quality improvement is often done on a project-by-project
basis and involves teams led by personnel with specialized
knowledge of statistical methods and experience in
applying them.
⚫ Projects should be selected so that they have significant
business impact and are linked with the overall business
goals for quality identified during the planning process.
What is Quality Control
QC – the use techniques and activities to achieve,
sustain and improve quality of products or service.
It integrates these related techniques and
activities:
1. Specifications of what is needed
2. Design of the products/service/process and
procedures to meet specs.
3. Production or installation to meet full intent of
specs.
4. Data collection and analysis
5. Inspection to determine conformance to
specifications
6. Review usage to provide information for revision of
specs. – if needed 8
The aim should be towards quality improvement
Quality Improvement
⚫ Quality improvement (QI) uses quantitative
and qualitative methods to improve elements
such as the effectiveness, efficiency, safety,
service delivery, processes and systems, as
well as the performance of human resources
in delivering products and services.

9
What is the difference between quality
assurance and quality control ?
Some important Concepts in
Quality Management
What is a customer?
• Anyone who is impacted by the product or process
delivered by an organization.
• External customer: The end user as well as intermediate
processors. Other external customers may not be
purchasers but may have some connection with the
product.
• Internal customer: Other divisions of the company that
receive the processed product.

What is a product?
• The output of the process carried out by the
organization. It may be goods (e.g. automobiles,
missile), software (e.g. a computer code, a report) or
service (e.g. banking, insurance) 11
TOTAL QUALITY
MANAGEMENT PRINCIPLES

12
From product Quality to Total
Quality Mangement
⚫ After some time business start realising that
quality should not be looked from technical
discipline(e.g conformance and tolerance to
specification or number of defects per unit)
BUT rather as management discipline that
covers all aspects of business enterprise (e.g
design, marketing, manufacturing, human
resource management, supplier relations and
financial management and many others)
13
Types of Customers
⚫ External - outside the organization (people who
pay the bills.)
⚫ End-user customers
⚫ Manufacturer (OEM) for suppliers.
⚫ Internal - people within your organization who
receive your work
⚫ In many situations, producers have multiple
customers and therefore find it useful to identify
“core customers”
Who is Responsible for Quality
⚫ Quality not responsibility of any one person or
department – everyone’s job (operator to
CEO)
⚫ Start from marketing – determine customer
requirements until product received by
satisfied customer
⚫ Delegated to areas with authority to make
quality decisions
⚫ Areas responsible (figure next slide) for e.g
production based company

15
A typical areas of responsibility for quality
in Production based company
Customer

Marketing
Product Service

Packing & Quality Design

Storage Engineering
Product /
Service
Inspection & ⚫Procurement
Test (Purchasing)

Production Process
Design
16
Quality Assurance functions in
a company
⚫ QA or QC as a function within an
organization
⚫ Assists and supports other areas/depts. to
assure quality
⚫ Determines effectiveness of the system
⚫ Appraise current quality level
⚫ Determines quality problems/potential and
assists in correction of problem
⚫ Improve quality with cooperation from other
departments 17
Chief Executive Officer (CEO)-
Top management
⚫ CEO of a company has ultimate
responsibility for quality
⚫ Must have knowledge of quality and
involvement in quality improvement
⚫ Create quality council, participate in
meetings
⚫ Developing mission and vision
⚫ Need measurement of quality performance
⚫ Malcolm Baldrige National Quality Award (in
Malaysia – Prime Minister’s Quality Award)18
The Quality Hierarchy
Incorporates QA/QC activities
Total Quality into company-wide system aimed
Management at satisfying the customer
Prevention
SPC
Actions to insure products or
Quality Assurance
services conform to company
requirements

Quality Control Operational techniques to make

inspection more efficient and to
Detection SQC reduce the costs of quality.
Inspection
Inspect products

19
PRINCIPLES OF TQM
Total Quality Management
Principles
⚫ TQM was developed by William Deming, a
management consultant whose work had a
great impact on Japanese manufacturing.
⚫ While TQM shares much in common with the
Six Sigma improvement process, it is not the
same as Six Sigma.
⚫ TQM focuses on ensuring that internal
guidelines and process standards reduce
errors, while Six Sigma looks to reduce
defects. 21
Total Quality Management
Principles
⚫ Total quality management (TQM) is the continual
process of detecting and reducing or eliminating errors in
manufacturing, streamlining supply chain management,
improving the customer experience, and ensuring that
employees are up to speed with training.
⚫ Total quality management aims to hold all parties
involved in the production process accountable for the
overall quality of the final product or service.

22
Total Quality Management
Principles
⚫ the Total Quality Management Principles are:
⚫ A framework for leading an organization

⚫ by focusing on the needs of customers

⚫ and other stakeholders.

23
Total Quality Management
Principles (next)
⚫ 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.
⚫ TQM is considered a customer-focused process and
aims for continual improvement of business operations.
⚫ It strives to ensure all associated employees work
toward the common goals of improving product or
service quality, as well as improving the procedures that
are in place for production.
24
25
26
27
28
What are the Eight (8) TotalQuality
Management Principles?

1. Customer Focus
2. Leadership
3. Involvement of People
4. Process Approach
5. Systematic Approach to Management
6. Continual Improvement
7. Factual Approach to Decision-Making
8. Mutually Beneficial Supplier Relationships

29
Principle 1: Customer Focus

⚫ Oranisation must strive understand, strive to meet and exceed

customer expectations.
⚫ Organizations depend on their customers and should
⚫ understand needs, current & future

⚫ meet / exceed those needs

⚫ to achieve
⚫ business performance & effectiveness

⚫ customer loyalty

⚫ through
⚫ market / customer research

⚫ alignment of objectives with needs

⚫ measurement of customer satisfaction

⚫ balance among needs / interests of all stakeholders

30
Principle 1: Customer Focus
understand, strive to meet and exceed customer expectations.*

What is the status of Customer Focus in YOUR

world today?

What do you like? What would you change?

Who does it well? Poorly?

31
TQM’s Customer Approach
⚫ “the customer defines quality.”
⚫ “the customer is always right.”
⚫ “the customer always comes first.”
⚫ “the customer is king.”
⚫ “quality begins and ends with the customer”
Principle 2: Leadership
⚫ must have leaders that promote unity, purpose, and involvement*
⚫ Leaders establish
⚫ unity of purpose and direction

⚫ environment where people are involved

⚫ to achieve
⚫ Need good communication between leaders and employee,
motivate people.
⚫ Alignment of organization’s objectives with the employee

⚫ through
⚫ considering needs of all parties

⚫ vision, values, goals, targets, etc

⚫ fairness, respect, ethics, trust (elim. fear)

⚫ providing resources, removing road-blocks

⚫ inspiring, encouraging, recognizing

33
Vision Led Value Driven Leadership

34
Principle 2: Leadership
unity, purpose, and involvement*

⚫ Leadership skills must be cultivated

35
Principle 2: Leadership

How do the leaders in your life perform in these respects?

How about YOU as a leader?

36
Principle 3: People Involvement
People...are the essence of the organization...

⚫ People at all levels must get involve in the quality management

⚫ People are the essence of the organisation

⚫ their full involvement are required to achieve the organizational

objectives
⚫ to achieve
⚫ Leaders must give motivation, promote innovation and creativity
among the people in the organization
⚫ People in the organization must have accountability and participate
and contribute to the success of the organisation
⚫ It can be achieved through their understanding of
⚫ their roles and goals

⚫ importance of their contributions

⚫ Their strengths, opportunities to gain knowledge and experience

⚫ constraints, issues, problems in the organisation

37
Principle 3: People Involvement
People...are the essence of the organization...

How well are you involved by the leaders of the organizations in which
you participate?

How well do you as a leader involve others?

38
 Principle 4: Process Approach

⚫ A process approach
⚫ related resources and activities are managed as a process

⚫ achieves desired results more efficiently

⚫ manages related resources, activities, etc. as a process

⚫ to achieve
⚫ lower costs, reduce cycle times

⚫ consistency, predictability... improvement

⚫ through
⚫ defining result... process... inputs...

⚫ responsibility, accountability, measurement / analysis

⚫ identifying interfaces, interdependencies

⚫ focus on critical factors, best opportunities, risks, etc/

39
Principle 4: Process Approach

⚫ People must embrace that everything done is involved in a process

- Example: Suppliers... Inputs... Process... Outputs... Customers
• A process perspective links all necessary activities together, increase
the employees’ understanding of the entire system not just one small
part
• By understanding this concept, it is much easier to carry out
continuous improvement iniatives

40
Principle 4: Process Approach

Regarding the processes that you encounter, how well are they
managed?

Are they managed as processes, or otherwise?

How / how well do you manage your processes?

41
Principle 5: Systems Approach

⚫ Systems are
⚫ collections of interrelated processes that interfaces,
interdependences, etc.
⚫ that are best managed as a whole (system)

⚫ to achieve
⚫ The system must be efficient, effective and continuously
improved
⚫ through
⚫ thorough definition and understanding of the KEY
processes
⚫ System that can be measured and evaluated

⚫ Employees that have accountability

42
 Principle 6: Continual Improvement

⚫ Continual improvement
⚫ Involves both incremental and breakthrough improvemnets
in overall performance
⚫ Must be permanent objective in an organization

⚫ For example, continuous improvement can enhance value

to customers through new improve products and services
⚫ It can also reduce errors, defects, wastes, and costs,
improved productivity and effectiveness in the use of
resources.

43
Principle 6: Continual Improvement

▪ One of the most important in Continual improvement is

Education and Training
▪ Education and training are fundamental to total quality
because they represent the best way to improve people
on a continual basis

44
 Principle 7: Factual Approach...
based on.. analysis of data and information.*

Are you a “facts and figures” sort or person?

A “go with the gut and instict” type?

How about those you work with?

45
 Principle 7: Factual Approach...

⚫ Based on analysis of data and information.

⚫ Measure, collect data- Analyze it- make results available –Use
them
⚫ “Can’t manage what you can’t measure”
⚫ The data or facts can be used to:
⚫ Support improvement activities

⚫ make better decisions, results

46
 Principle 7: Factual Approach...

From: “As Easy as Two Plus Two”, News for a Change, Association
for Quality and Participation, Cincinnati, OH., Nov. 1997, p. 4 47
Principle 8: Mutually Beneficial Supplier
Relationships

⚫ A Win-Win approach between supplier and manufacturer where

both organizations join efforts to can create values such as
better flexibility, respect, trust, speed, recognition, information
sharing, communication and standards

48
Summary: the eight QMPs

1. Customer Focus
2. Leadership
3. Involvement of People
4. Process Approach
5. Systematic Approach to Management
6. Continual Improvement
7. Factual Approach to Decision-Making
8. Mutually Beneficial Supplier Relationships*

⚫ See also
[Link]
for further elaboration

49
 TQM in Service
Companies
⚫ Principles of TQM apply equally well to
services and manufacturing
⚫ Services and manufacturing
companies have similar inputs but
different processes and outputs
⚫ Services tend to be labor intensive
⚫ Service defects are not always easy to
measure because service output is not
usually a tangible item
 Quality Attributes in
Service
⚫ Benchmark
⚫ “best” level of quality
achievement one
company or companies
seek to achieve
⚫ Timeliness
⚫ how quickly a service
is provided
“quickest, friendliest, most
accurate service
available.”
3-51
Cost of Quality

52
The Cost of Quality
⚫ Cost of Quality
⚫ Framework for identifying quality components that are
related to producing both high quality products and low
quality components, with the goal of minimizing the
total cost of quality.

53
 Cost of Quality
There are 2 parts
1) Cost of Achieving Good Quality
⚫ Prevention costs
⚫ costs incurred during product design
⚫ Appraisal costs
⚫ costs of measuring, testing, and analyzing
2) Cost of Poor Quality
⚫ Internal failure costs
⚫ include scrap, rework, process failure, downtime,
and price reductions
⚫ External failure costs
⚫ include complaints, returns, warranty claims, liability,
and lost sales
“Costs” of Quality
Category Definition Example

Costs associated with preventing Training, early reviews, quality planning,

Prevention
defects. tools, process improvement initiatives.

Costs associated with analyzing

Inspections, testing, audits, quality
Appraisal and testing the product to ensure it
control.
conforms to specifications.

Costs associated with fixing Repair, retesting, updating

Internal Failure
defects found prior to release. documentation.

Technical support, defect reporting and

External Costs associated with fixing
tracking, field updates, loss of future
Failure defects found after release.
sales.