MASINDE MULIRO UNIVERSITY OF SCIENCE AND TECHNOLOGY

SCHOOL OF BUSINESS AND ECONOMICS (SOBE)

DEPARTMENT OF BUSINESS ADMINISTRATION AND MANAGEMENT SCIENCE

MAIN/BUNGOMA/WEBUYE CAMPUS

BCB 105: QUALITY MANAGEMENT

INSTRUCTOR: Dr. Mamadi [Link], MBA, PhD
Email: smamadi@[Link] Cell Phone: 0724962585

COURSE OUTLINE 2024/2025 ACADEMIC YEAR

Course Purpose
This course is designed to help learners understand the role of quality management in an
organization and how quality practices impact on the general organization performance.

Course Objectives
By the end of the course the learners should be able to:-
(i) Explain the meaning of quality management and the dimensions of quality
(ii) Analyze conditions necessary for adoption and practice of total quality
management
(iii)Describe the various tools and methods of their application to ensure quality
(iv) Explain the role played by quality management in organization performance

Course Assessment
Assignments 10%
CATs 20%
Final Exam 70%
Total 100%

Teaching Methodology
Class lectures/Class discussions /Group tasks

COURSE CONTENT
WEE CONTENT REFERENCES
K
1 1.0 INTRODUCTION TO QUALITY MANAGEMENT Sunganhi L.
1.1 Introduction Total quality
1.2 Historical Background management
1.3 Defining Quality
1.4 Dimensions of Quality Mohanty P.
1.5 The Importance of Quality
Total quality
1.6 The Cost of Quality
1.7 Quality and other Functional areas of Management
management
2 2.0 PHILOSOPHIES OF QUALITY MANAGEMENT Brace B.
2.1 Edwards Deming Total quality
2.2 Joseph M Juran management
2.3 Philip B Crosby
2.4 Armand V Feignbaum Kiritharan, G
2.5 Kaoru Ishikawa
TQM
2.6 Shigeo Shingo
2.7 John S Oakland
2.8 Genichi Taguchi
3 3.0 CUSTOMER SATISFACTION Sunganhi L.
3.1 The concept of customer satisfaction Total quality
3.2 identifying customer satisfaction management
3.3 Measures of customer satisfaction
3.4 Customer satisfaction model Mohanty P.
3.5 Determinants of customer satisfaction
Total quality
3.6 strategies to enhance customer satisfaction
management
4 4.0 SERVICE QUALITY Sunganhi L.
4.1 Definition of Service Total quality
4.2 Characteristics of Services management
4.3 Differences between Services and Manufacturing
4.4 Service Quality Defined Mohanty P.
4.5 Determinants of service quality
Total quality
4.6 Service Delivery
4.7 Service Quality Models
management
5 5.0 DESIGN FOR QUALITY Sunganhi L.
5.1 The design Process Total quality
5.2 Service Design management
5.3 Quality Function Deployment (QFD) Mohanty P.
5.4 Design of Experiments Total quality
5.5 Failure Mode and Effect Analysis (FMEA)
management
6 6.0 TOTAL QUALITY MANAGEMENT Brace B.
6.1 Definition of TQM Total quality
6.2 Principles of TQM management
6.3 TQM Models and Frameworks
6.4 The TQM Approach Kiritharan, G
6.5 Ten Mantras of TQM
TQM
6.6 Benefits of TQM
6.7 Criticism of TQM
7 7.0 QUALITY IMPROVEMENT TECHNIQUES Brace B.
7.1 Benchmarking Total quality
7.2 Business process Re-Engineering (BPR) management
7.3 The Six Sigma
7.4 Supplier Development Kiritharan, G
7.5 People Management
TQM
7.6 Other Quality Improvement Techniques

8&9 8.0 QUALITY TOOLS AND MEASUREMENT Brace B.

8.1 Quality Measurement Total quality
 8.2 Quality Tools management
8.3 Process and / or Machine capability Kiritharan, G
8.4 Performance Measurement TQM
10 9.0 QUALITY TEAMS AND QUALITY CIRCLES Kiritharan, G
9.1 Quality Teams TQM
9.2 Quality Circles
11 10.0 QUALITY MANAGEMENT SYSTEMS KEBS
10.1 ISO 9000 Standards implementation
10.2 ISO 9001:2000 Quality Management Systems – of ISO 9000
Requirements
10.3 Documentation of Quality Management System Mohanty P.
10.4 Quality Audit and Auditor Total quality
10.5 Construction of Quality Management System management
10.6 ISO 14000 Standards
10.7 ISO Certification
12 11.0 IMPLEMENTATION OF TQM & THE Brace B.
MANAGEMENT CHANGE Total quality
11.1 Approaches for the implementation of TQM management
11.2 A framework for the introduction of TQM
11.3 TQM implementation process Kiritharan, G
11.4 Barriers in implementation of TQM
TQM
11.5 Managing change
11.6 Change Management Process
11.7 Framework for Managing change Maru, L. C.
11.8 Roles in implementing organizational change Change and BPR
11.9 Leadership techniques for Change
11.10 Competencies in change
12.0 QUALITY MANAGEMENT AWARDS & Sunganhi L.
13 FRAMEWORKS Total quality
12.1 The Deming Application Price management
12.2 The Malcolm Baldrige National Quality Award Mohanty P.
12.3 The European Quality Award Total quality
12.4 The Australian Excellence Award
management
12.5 The Company of the Year Award (COYA)
14 Course Review
RECOMMENDED TEXTBOOKS
1. KEBS (2008); Implementation of ISO 9000 Standards. Nairobi. Training and
advisory services.
2. Ron Collard (2003); Total Quality, 2nd Edition
3. Poornima M. Carantimach(2000); Total Quality Management, First Edition;
Pearson Education (Singapore).
4. James and Edward (2005); Total Quality Management; 3 rd Edition.
5. Brace B. (1992); Quality Management, Business One, Illinois.
6. James L. (1991); Quality function deployment, A SQC Quality press,
Wisconsin, 1991
7. Mohanty P. (2000); Handbook of Total Quality Management, Jaico Publishing
House.
8. Suganhi, L. (2008); Total Quality Management, Prentice Hall of India, New
Delhi.
 TOPIC ONE
INTRODUCTION TO QUALITY MANAGEMENT
The demands of the stakeholders and more so the customers are forever increasing as they
require improved quality of products and services. The customer has come of age and no longer
accepts inferior quality limited choice and monopolistic margins. Today’s customer is strongly
demanding quality in products and services. Hence continuous improvement in business
activities with a focus on the customer throughout the entire organization and an emphasis on
quality is one of the main means by which organizations face up to the global competitive
threats. This is why quality is looked upon by many organizations as the means by which
organizations as the means by which they can survive in an increasingly aggressive market and
maintain a competitive edge over their competitors. Quality is a major factor in business
revolution as it enhances sales and revenue growth, creates jobs and provides an avenue for
suitable business expansion. Good quality products and services mean customer satisfaction
and long term loyalty.
Historical Background
The history of quality can be traced back to 221BC when in china the Chon Dynasty required
that physicians pass an examination before entering practice. This was also practical by the
ancient Egyptians in the construction of pyramids and architectural constructions of Rome.
A major impetus for more quality control comes with industrial revolution. The revolution
brought the concern of division of labour as a method of enhancing quality.
Chronology of Quality Development
Pre-1900 – Quality as an integral element of craftsmanship.
1900 – 1920 – Quality control by foreman.
1920 – 1940 – Inspection based quality control
1940 – 1960 – Statistical process control
1960 – 1980 – Quality assurance/the quality department
1980 – 1990 – Total quality management
1990 – 2000 – Total quality management & the culture of continuous improvement.
2000 – Present organization wide quality management.
Basu(2004) Summarized the development in quality management into four major phases as
follows:
Phase 1: Inspection
 - Check work after the event
- Identifying sources of non-conformance
- Take corrective action
Phase 2: Quality control
- Self-inspection
- Quality planning & procedures
- Use of basic statistics
- Quality manual
- Use of process performance data
Phase 3: Quality assurance
- Develop quality system
- Use of quality cost data
- Quality planning
- Use of statistical process control
- Involve non-separations functions
Phase 4: Total Quality management (TQM)
- Team work
- Employee environment
- Process management
- Performance management
- Involvement of functions
Defining Quality
Quality refers to ability of a product or service to consistently meet or even exceed customer
needs and expectations. Quality means getting value for your money; getting what you pay for.
This customers satisfaction is the main criteria for determining whether a product possesses the
required quality or not.
Feigenbaum (1983) states that quality is a customer determination which is based on customers
actual experience with the product or service, measured against his/her requirements stated or
unstated conscious or merely sensed, technology operational or entirely subjective and always
representing a moving target in a competitive market.
The driving force behind any quality program is the customer. The customer is the judge to
determine the level of quality and hence as the needs of customers change, so should the level
of quality.
Gravin (1984) developed a conceptual framework for categorizing the approaches used to
define quality. His classification is based on the following perspectives.
i. Transcendent perspective – seeks to define quality in terms of some philosophical,
perceptual moral or religious connotation.
ii. Product – Based perspective – fitness for use performance, safety and dependability
iii. User -Based perspective – Suggests that quality is the ability of a products in the ability
of a product to satisfy human works.
iv. Manufacturing – Based perspective – Pertains to a products degree of conformance to
engineering and design specifications.
v. Value-Based Perspective – Relates products quality & services
vi. Social Loss perspective – The loss the product cause to the society e.g. cigarettes Nyein
alcoholism.
vii. The slogan approach- meaningless platitude with which nobody disagrees as to who will
be against quality.
Dimension of Quality
Customer expectation can be broken down to a number of dimensions that customers use to
judge the quality of a product or a service. Garvin
(1984) identified eight dimensions of quality which he maintains covers various meanings of
quality held by the management and customers appropriate in the product area as follows
i. Performance
ii. Aesthetics - Appearance, feel, smell, taste, sound etc.
iii. Reliability – Ability a product to continue function.
iv. Durability – How long the product can perform before break.
v. Maintainability and serviceability – frequency, cost .
vi. Special feature – extra features.
vii. Conformance – how well a product corresponds to specializations e.g. suits
&dress.
viii. Perceived quality (using history to make judgement brand loyalty e.g. Toyota,
Sony TV).
Dimension of service quality
 - Reliability – perform the promised service.
- Responsiveness – willingness to help customers.
- Assurance – inspire trust & confidence (medical services).
- Empathy – having a personal touch.
- Tangibility – appearance of physical facilities in relation to the service being offered e.g.
in kinyozi, salon etc.
- Time – the speed with which services is provided.
- Quality is therefore determined by balancing technical considerations such as fitness for
use performance, safety and reliability with economic factors which include price and
availability.
The importance of Quality
i. Increases customers satisfaction
ii. It enhances profitability
iii. It lowers costs
iv. It increases productivity
v. It enhances competitiveness
vi. It enhances staff morale
vii. It increases flexibility in meeting the changing needs of the market.
viii. It improves customers services delivery.
The cost of Quality
This is the amount of money that has to be spent as a result of quality problems within the
organizations’ American society for quality control (ASQC) (1971) Categorized quality costs
the four categories.
a. Internal failure costs.
b. External failure costs.
c. Appraisal costs.
d. Prevention costs.
Internal failure costs,
Failure costs are costs that result from producing defective costs. They are costs of doing it
wrong. Internal failures may occur due to a variety of reasons e.g. Defective materials from
vendors, faulty equipment & machines, incorrect method & carelessness faulty materials
handling procedures and incorrect processing related costs include,
i. Downtime – idle personnel and facilities.
ii. Scrap – can’t be revised or used
iii. Rework – rectification – cost of correcting.
iv. Costs of re-inspection.
v. Down grading costs – selling at throw a way prices.
vi. Waste
vii. Costs of investigation
viii. Inventory safety stocks
ix. Excess capacity cost
x. Defect generated overtime costs.
External Failure costs
These are costs incurred when the product fails to perform satisfactorily after being transferred
to the customer. External failure costs include
- Loss of goodwill
- Warranty charges
- Liability costs
- Costs of returned, replacement or allowances.
- Complaint costs.
Appraisal costs
Accepting to mitra(2000) appraisal costs are those costs associated with measuring, evaluation
or auditing products, components or purchased material to determine their degree of
conformance to the specified standards. The costs include
- Incoming material inspection.
- In process inspection and testing.
- Cost of maintain inspection facilities.
- Cost of quality audits.
- Cost of materials and products consumed in a destructive test or devalued by reliability
test.
- Cost of interruption of production to take
- Vendor rating costs to assess and approve of all products and service.
Prevention Costs
The costs of processing, implementing and maintaining a quality system (mitra 2000).They are
costs incurred in order to prevent defects from occurring. Such costs include,
- Quality planning.
- The cost of determining products & services requirement.
- The cost of product design and review.
- Training costs.
- Data collection analysis and reporting costs.
- Cost of quality improvement efforts.
Quality and other functional areas of management.
 i. Marketing
ii. HRM
iii. Strategy
iv. Production & operations management
Quiz;
a. Explain why organizations view quality as a source of competitive advantage.
b. “For any organization to succeed in this challenging business environment it has to be
productive in this plan” Discuss this quote in relation to quality function.
c. Explain the extent to which quality is a universal concept.
TOPIC TWO:
PHILOSOPHIES OF QUALITY MANAGEMENT
Deming’s philosophy,
Deming believed that management needs to focus on causes of variability in manufacturing
process. According to him there are two main causes of quality problems; common and
‘special` causes.
-Special causes are those relating to particular operators or machines and require attention to
individual cause while common causes are those which arise from the operation of the system
itself and are the responsibilities of management.
- Deming believed in the use of statistical process control(spa) charts as the key methods for
identifying special and common causes and assisting in the diagnosis of the quality problems.
-Deming believed in a systematic approach to problem solving and promoted the widely know
Deming Shewhart or PDCA cycle plans, Do, checks and Action.

ACT
CHECK PLAN

DO
Plan stage – identify & recognize opportunities for improve.
Do stage – implementing the course of action that is intended to satisfy the customer needs on a
small scale.
Check stage – auditing the do stage to confirm the performance of the system vis a vis customer
satisfaction.
Act stage – making decision regarding the implementation.
The PDCA cycle is universal quality improvement methodology the idea being to constantly
improve and there by reduce the difference between customer requirement.
The PDCA cycle is about learning and ongoing improvement, learning what works and what
does not work in a systematic way.
Deming seven fundamental beliefs (seven deadly sin)
 1. Lack of constancy of purpose. Top management must always aim at long term goals and
formulate operational strategies to achieve them. The managements must walk their talk
because constancy of purpose ensure & assures survival.
2. Short – term orientation organizations should not focus on short term goals and
objectives since they give birth to manipulation & creative accounting.
3. Over- emphasis on performance appraisal and merit relating. This can be devastating for
organization because it may promote rivalry and internal competition hence reducing the
spirit of cooperation team work that may have existed. For an organization to be
competitive a concerted effort must be made to ensure that everyone works as a team.
4. Job – hopping – organizational instabilities occur when managements mobility is high
because management may not get to learn the real problems and requirements of an
organization.
5. Management by visible figures alone: Figures do not necessary present the position of
the organization they can easily be manipulated. There are cases when management cut
down on research, training and education costs to report an increased profit.
6. Excessive medical costs – this paralyses competitiveness.
7. Excessive legal costs - affects competitiveness
Deming’s Quality Approach
a. The statistical process control
b. Demings 14 points for management
- Create constancy of purpose towards improvement of product and service.
- Adopt the new philosophy for economic state
- Cease dependence on mass inspection to achieve quality (Design quality into the
product at the development stage instead of inspect quality into the product.
- End the practice of awarding business on the basis of price. (Tendering base on
quality.
- Improve constantly and forever the system of production and service. (Move
away from defect detection to defect prevention)
- Institute modern methods of job related training
- Institute modern methods of leadership – adopt a style of coaching and support
- Drive out fear
- Break down barriers between departments & individuals
- Eliminate the use of slogans, posters and exhortations
 - Eliminate numerical quotas, work standards and management by objectives or
numerical goals
- Remove barriers that rob workers of their rights to pride in workmanship
- Institute education and re-training program
- Take action to accomplish the transformation
c. The seven-point action plan
- Management must agree on the meaning of the quality programme, its
implication and the direction to
- Top management must accept and adopt the new philosophy
- Top management must communicate the plan and the necessity for it to the
people in the organization
- Every activity must be recognized as a step in a process and customers of that
process identified
- Each stage must adopt the Deming or show hart cycle plan, Do, check and Act as
the basis of quality management
- Team working must be engendered and encouraged to improve inputs and
outputs; everyone must be enabled to contribute to this process.
- An organization for quality must be constructed with the support of knowledge
stations.
Deming’s system of profound knowledge for continuous improvement
1. Knowledge of the system and the theory of optimization
2. Knowledge of theory of variation
3. Exposure to the theory
4. Knowledge of psychology
A critique of Deming’s work
The principle strength in Deming’s approach is the systematic logic in his thinking particularly
the idea of the internal customer – Supplier relationships and secondly his emphasis on
management leadership and has in statistical approaches are amazing. However, Deming’s
work lacked a well-defined methodology and his work is not adequately grounded in human
aspects. Some have even criticized his work as essentially based on hard sciences.
Joseph M. Juran – Juran’s Philosophy
Jurans work envisioned that in organizations, quality management doesn’t happen by accident
but has to be planned. He believed that poor quality is usually the result of poor management.
His philosophy emphasizes that management should pursue the goal of quality improvement
and maintenance of two levels; first the goal of the firm as a whole and secondly the goal of
individual departments within the firm to achieve and maintain high quality.
Beliefs of Juram’s Philosophy
- Management is largely responsible for quality
- Quality can only be improved through planning
- Plans and objectives must be specific and measurable
- Training is essential and starts at the top
- A three-step process of planning, control and action is needed.
Juram’s Quality Approach
Juram’s work envisioned that an organization can manage for quality. He admits that most
quality programs that fail to do so because organization do not realize how difficult developing
a new process can be. Juram places less emphasis on statistical methods rather he believes that
quality begins by knowing what customers want.
Quality planning
- Identify the customers
- Determine the need of those customers by conducting research and survey of
clients and non-clients
- Translate those needs into the language of the customer
- Develop product features that respond to customers
- Optimize the product features so as to meet both organizational and customer
needs
- Develop process that can that can produce the intended product features such as
methods and equipments
- Optimize the process
- Prove that the process can produce the product under operating conditions
- Transfer the process to operations
Quality control
- Choose control subjects or product character which are to be controlled
- Chose units of measurement
- Define procedure for taking measurements
- Establish standards of performance based on customer requirements
 - Measure actual performance based o process output
- Interpret the difference between the actual and standard
- Take corrective action in the event of a discrepancy
Quality improvement
- Create awareness of the need & opportunity for quality improvement
- Set goals for continuous improvements
- Build an organization to achieve goals by establishing a quality council,
identifying problem, selecting a project appointing teams and choosing
facilitation
- Give everyone training so as to help make quality and integral part of everyone’s
thinking
- Carry out projects to solve problems
- Report progress
- Show recognition
- Communicate results
- Keep a record of success
- Incorporate annual improvements into the company’s regular systems and
processes and thereby maintain momentum
Weakness of Juram’s work
- The literature or motivation and leadership is not addressed
- Workers contributions are underrated
- He fail to address the issue of culture and policies
- His work seem to be most suitable for the industrial and manufacturing sectors
PHILIP B CROSBY – Crosby’s Philosophy
He believed that the key to quality improvement was changing the thinking of top
management. If the management expected imperfection and defects it would get them. But if
management established a higher standards of performance and communicated to all levels of
the organization, zero defects was possible. Crosby defined quality as conformance to
requirement.
The five Absolutes for quality
1. Definition of quality – conformance to requirements
2. There is no such thing as quality problem
 3. It is always cheaper to do Right first time
4. The only performance measure is the cost of quality
5. Zero Defect performance
Crosby’s vaccination Secum( Prevents the disease of low quality)
a) Integrity
- The CEO should be dedicated to have customers receive what was promised
- The management should take customers requirement and employees suggestion
seriously
- The Managers who work for the senior executive should know what the future
rests with their ability to get things done through people
- The professionals in the organization should know that the accuracy and
completeness of their work determines the effectiveness of the entire work force
- The employees should recognize that the individual commitment to integrity is
what makes the organization sound.
b) Systems
- Measuring conformance to requirements
- Quality education system
- Financial method of measuring non-conformance and conformance costs is used
to evaluate processes
- The use of company’s products and services by customers is measured and
reported for corrective action
- The emphasis on defect prevention services as a base for continual review and
planning.
c) Communication
- Information about the progress of quality improvement and achievement action is
continuously applied to all employees.
- Provide recognition programs to all levels of responsibility
- Each person in the organization should be able to communicate with top
management
- Management status meetings should always begin with a factual and financial
review of quality
d) Operations
 - Supplies should be educated in order to ensure that they will deliver products and
services that are dependable and in time
- Procedures, products & systems are qualified and proven prior to implemented
and then continuously examined and model
- Training should be a routine activity for all
e) Policies
- The policies on quality should always be clear an ambiguity
- The quality functions should be at the same level as other functions
- Advertising and other forms of communication must be in compliance with the
requirements that the product and services meet on.
Quality Approach
1. Establish management commitment
2. Formation of quality improvement team
3. Establish quality measurement
4. Evaluate the cost of quality
5. Raise quality awareness
6. Take corrective measure
7. Undertake zero defects planning
8. Train supervision and managers
9. Hold a zero defects day
10. Encourage the setting of goals
11. Encourage obstacle reporting
12. Provide recognition for contributions
13. Establish quality councils
14. Do it all over again
A critique of Crosby’s work
- Doesn’t believe that workers should take prime responsibility for poor quality
- Crosby considers only one goal of the organization and that is zero defects
- Crosby’s assumption that people will work in an open and conciliatory manner
may be far fetched
ARMAND V. FEIGNBAUM – Feignbaum’s Philosophy
His philosophy is founded in his early idea of the total approach to quality which reflects a
systematic attitude of mind. He defined quality as “ Best for the customer use and selling price
and quality control as “An effective system for integrating quality development, quality
maintenance and quality improvement efforts of the various groups within an organization so as
to enable production and service at the most economical levels which allow full customer
satisfaction.
 Feign Baum recognizes that organization do not only manufacture products but also
design and develop them.
 Feignbaum’s philosophy resonated around a commitment to a systematic total approach
and an emphasis on designing for quality and involving all the functional areas including
recognition of and enhancement of human aspects of the organization.
Quality approach
- Set quality standards
- Appraising performance based on standards
- Act when standards are not met
- Plan to make improvements
He proposed participation as a means of harnessing the contribution of people and encouraging
a sense of belonging. He further proposed the measurement of what he called operating quality
costs which he categorized into four groups, internal failure, appraisal costs and prevention
costs.
KAURO ISHAKAWA – Ishkawa’s Philosophy
Ishakawa believed in the concept of company – wide quality. He argued that quality control
activities not only ensure the quality of industrial products but also contributes to the
organizational overall business.
- Ishakawa defines quality as “not only the quality of the product, but also of after
sale service, quality of management, the company itself and the human beings.
- Ishakawa believed that effective participation among people is an absolute
requirement for a quality organization.
Principle strands in Ishakawa Philosophy
- Holistic approach advocated by company – wide quality control
- Participation, active and creative co-operation among those affected by quality
initiatives
- Communication through simplicity of methods and commodity of language
Quality Approach
Ishakawa’s main method of quality management is companies wide quality control which is
being supported by quality circles and seven tools of quality control which incudes:
- Parent charts
- Ishakawa (Fishbone) diagram
- Stratification
- Check sheets
- Histograms
- Scatter diagrams
- Control charts
JOHN S. OAKLAND – Oakland’s Philosophy
Oakland gives absolute importance of the pursuit of quality as the cornerstone of organizational
success.
According to Oakland quality starts at the top-level management because they are charged with
the responsibility of setting quality parameters in the organization.
Oaklands defines quality as meeting the customers requirements.
CHARACTERISTICS OF TQM
- Quality is meeting the customers requirements
- Most quality problems are interdepartmental
- Quality monitoring, finding and eliminating cause of quality problems
- Quality assurance rests on prevention management system effective audit and
review
- Quality must be managed, it does not just happen
- Focus on prevention not cure
- Reliability as an extension of quality enables the organization to delight the
customer.
Quality approach
- Long term commitment
- Change the culture to right first time
- Train the people to understand the customer supplier relationship
- Buy products and services on the basis of total costs
- Recognize that systems improvement must be managed
 - Adopt modern methods of supervision and training to eliminate fear
- Eliminate barriers, manage processes and improve communication and teamwork
- Eliminate arbitrary goals, standards based only on numbers, barriers to pride of
workmanship and fiction
- Constantly educate and re-train in house experts
- Utilize a systematic approach to TQM implementation
SHIGEO SHINGO – Shingo’s Philosophy
Shingo believed that statistical methods detect error too late in the manufacturing process. He
suggested that instead of detecting errors, it was better to engage in preventive measures and
aimed at eliminating sources of errors.
Shingo is strongly associated with just in Time (JIT) manufacturing and invented the single
minute Exchange Die (SMED) System in which set up time are reduced from hours to minutes
and the Poka – Yoke (Mistake proofing system)
Quality Approach
Shingo was the first person to engage in what has been called re-engineering. He developed JIT
, SMED and Poka – Yoke, and emphasized zero defects.
GENICHI TANGUCHI -Taguchi Philosophy
Defines quality as “the loss emparted to the society from the time a non – quality product is
shipped
Taguchi’s main concern is with the customer satisfaction and the potential loss of reputation
and goodwill associated with failure to meet customer needs and expectations.
Taguchi’s method relies on the following organization principles
i. Communication
ii. Control
iii. Efficiency
iv. Effectiveness
v. Efficacy
vi. Emphasis on locating and eliminating of causes of error
vii. Emphasis on design control
viii. Emphasis on environmental control
Quality approach
Taguchi’s quality approaches centre on the concept of Keizen thinking which means continuous
improvement.
1. Steps for experimental studies
- Define the problem
- Determine the objective
- Conduct a brainstorming session
- Conduct the experiment
- Design experiment
- Analyze the data
- Interpret the results
- Run confirmatory results
2. Prototyping
- System design
- Parameter design
- Tolerance design
3. Quadratic loss function
L = C(X-T)2 + K
L = Total loss to society
C = Cost on failing to meet the target
X = Quality characteristic
T = Set target value of quality
Sample questions
1. Compare and contrast Demings fourteen points with Crosby’s fourteen steps of quality
2. Discuss the Juram’s trilogy program and its use in managing quality
3. The production manager of Supa loaf Kenya Limited engaged in a bitter argument with
Mr. Mamadi a quality consultant on the concept of “zero defects”. The manager argues
that the production process is full of variations and that zero defects cannot be attained.
To what extent are the two views correct.
TOPIC THREE:
CUSTOMER SATISFACTION
Satisfaction may be considered as a customer’s evaluative reaction to how particular product
performed when compared to how he or she anticipated that it would perform.
Identifying customer satisfaction
- Regular customer feedback system
- Market research
- New/lost customer survey (contact exit interviews)
- Focus groups (meeting a group of customers)
- Customer visits
- Frontline personnel
- Critical incident Technique – Identifying the issues the delight the customer and
those that dissatisfy them.
- Mystery shoppers – Managers acting incognito as customer
- Customers related information from other sources.
Measures of customer satisfaction
Customer satisfaction enhances customer loyalty. Customer loyalty is the feeling of attachment
to or affection for a company’s people products or services.
- Intent to purchase
- Primary behavior (Frequency, amount, retention & longevity)
- Secondary behavior – Customer referrals, endorsement etc)
Customer satisfaction model
The Kano Model is the mostly widely used model of customer satisfaction. The model
describes three levels of customer satisfaction
i. Expected quality – Basic attributes
 ii. Desired quality – “ wished for”
iii. Excited quality – Delighted attraction attributes
Determinants of customer satisfaction
- Product and service features
- Customer emotions
- Perception of equity and fairness
- Other customers, family members, friends and co-workers
Basically customer satisfaction is determined by the interaction of customer
perceptions and customer expectation. The higher the match between perception
and expectation, the higher the satisfaction levels, however any mismatch results
in dissatisfaction.
Strategies to enhance customer satisfaction
- Measure and monitor customer satisfaction continuously
- Establish and maintain contact with customers
- Focus on and analyze processes for successful customer orientation
- Promote a culture of empowerment, leadership and customer care
- Develop a commitment of trust, confidence and commitment to customers
- Design the product or service delivery system to meet customers need
- Provide education and training for employees
- Reward and recognition are the fundamental requirements for motivating people.
- Honor the promises made to the customers

TOPIC 4: SERVICE QUALITY

Definition of service
 Service are those separately identified and essentially intangible activities that provide
wanted satisfaction and that are not necessarily.
 Service include an activity whose output is not a physical product and is generally
consumed at the time it is produced and provides value that is essentially intangible.
Characteristics of services
- Intangibility
- Heterogeneity
 - Inseparability
- Perishability - production takes place simultaneously with consumption
Service quality
Service quality is the ability of an organization to meet or exceed customer expectations
Determinants of service quality
- Tangibility
- Reliability
- Communication
- Credibility
- Security
- Competence
- Courtesy
- Understanding
- Accessibility
Service quality models
- The gronross service quality model
- The servqual model
- Moore’s service quality model
- Service journey model
- Behavioral model
TOPIC 5:
DESIGN FOR QUALITY
Organizations that have well – designed products, services processes and systems are more
likely to realize their goals than those with poor design.
Design is an instrument which can be used to gain competitive advantage save time and effort,
deliver innovation, stimulate and motivate staff, simplicity tasks, delight clients and
stakeholders, dishearten competitors, achieve impact in a crowded market and justify premium
price.
Design Aspects
- Increased emphasis on customer satisfaction and increased pressure to the
competitor
- Increased emphasis on reducing the time needed to introduce a new product or
service
- Increased emphasis on reducing the time needed to produce a product or service.
- Greater attention to the capabilities of the organization to produce or deliver the
item
- Greater emphasis on environmental concerns
- Increased emphasis on designing products and services that are user friendly
- Increased effort to use less material for products and less packaging
The design process
The initial step in the design process is the motivation and the commitment for design
especially the top-level management. Other factors to get consider in design process include:
customer needs and expectations, new technologies, competition, government regulations e.t.c.
Stages in product/service design
- Conception or need identification
- Feasibility study
- Execution of the design
 - Detailed engineering
- Production process design and development
- Production evaluation and improvement
- Product use and communication
- Market evaluation
Important considerations in Designing
- Form and functional design
- Design and product costs
- Repair ability
- Miniaturization – need to make it smaller & lighter in weight
- Social costs
- Environmental concerns
Approaches to product design
- Manufacturing design
- Re-manufacturing
- Robust design
- Concurrent Engineering
- Computer Aided Design (CAD)
Quality Function Deployment (QFD)
QFD is a tool for linking customer requirements as defined by the customer to technical
specifications.
- QFD is a structural approach for integrating the voice of the customer into the
product or service development process.
- Customer requirements are determined through market research in conjunction
with potential customer’s important attributes or features of the product.
Benefits of QFD
- Help to identify needs and requirements of customers and translate them into
design requirements
- It is a systematic process which is used to build quality into the process of new
product development
- Enhances teamwork within an organization
Design of Experiments (DOE)
The design of experiment is a series of techniques which involves the identification and control
of parameters which have a potential impact on the performance and reliability of a product
design or the output of a process, with the objective of optimizing production design process
design and process operation and limiting the influence of noise factors.
It is a technique which enables designers to identify the most important variable in new
products design or process improvement.
Methods of Experimentation
- Trial and error method
- One factor at a time method
- The full factorial method
- The fractional factorial method
Failure Mode and Effect Analysis (FMEA)
FMEA is a systematic and analytical quality planning tool for identifying, at the product.
Service and process design and development stages what might potential go wrong either with
a product or with the provision of a service, thereby aiding fault diagnosis.
Oakland (2004) defined FMEA as the study of potential failure to determine their effects.
Procedure for Development of FMEA
- Identify the function of the product / service / process
- Identify the potential failure modes
- Assess the effects of each potential failure and summarize them
- Identify & review current controls for the detection of the failure mode
- Determine a risk priority Number (RPN)
- Direct focus for improvement action to the potential failures mode
- Monitor the recommendations
TOPIC 6:
TOTAL QUALITY MANAGEMENT
Moharity and Lakhe (2002) defined TQM as a quest for excellence, creating the right attitudes
and controls to make prevention of defects possible and optimize customer satisfaction by
increased efficiency and effectiveness.
- Oakland (1989) defines TQM as an approach to improving the effectiveness and
flexibility of a business as a whole
- Tobin (1990) views TQM as the totally integrated effort for gaining competitive
advantage by continuously improving every fact of organization culture
Principles of TQM
1. Customer Orientation
The goal of satisfaction of customers is fundamental to TQM. Customers are:
i. The most important people in the business organization
ii. Not an interruption to work but are the purpose of it
iii. Not dependent on the organization but the organization depends on them
iv. Doing a favor when they seek business
v. People who come with their needs and the job of the organization is to satisfy
them
vi. Deserve the most courteous and attentive treatment
vii. Life blood of the business
TQM focusses every aspect of the organizations activity towards the customers needs.
Management therefore needs to establish performance measurement instruments that would
reveal the level of customer satisfaction, and having known that an organization should be in
position to respond appropriately to customer needs.
Fishbone model of customer orientation
Management Training Employee Rewards &
Commitment Employment Recognition
Customer Benchmark & Resources/
Research standards Technology
Top management commitment is very important for the successful implementation of TQM in
an organization. They should demonstrate commitment to TQM by:
- Becoming the first set of recipients of training in the philosophies and methods of
TQM.
- Imparting training to others
- Attending regularly the TQM meetings and seminars
- Establishing customer satisfaction as their basic policy and determining the long
term goals
- Establishing TQM vision for the future and personally communicating
- Generating enthusiasm for TQM activities and enforcing code of conduct
- Providing opportunities to the subordinates to grow this area of work
- Delegating authority to subordinates to make them more responsible
- Incorporating TQM programs in the organizations overall strategy
- Recognize employees for a quality achievement
- Demonstrating by both words and action that quality is a number one operating
priority of the organization.
2. Employee involvement
Giving employees the responsibility for improvements and the authority to make
changes to accomplish them provides a strong motivation for employees
3. Team working
The use of teams for problem solving and to achieve consensus takes advantage of group
synergy gets people involved and promotes a spirit of cooperation and shared values
among employees
4. Continuous improvement
Continuous improvement efforts may either be incremental or breakthrough
improvements which can be achieved by use of improvement tools and techniques such
as organizational learning, business process re-engineering benchmarking, six sigma
techniques among others. The various steps that management needs to adopt in order to
continually improve the process include:
 Select process

Document Document process

Evaluate
Seek ways to improve

Implement the improved process

Design and improve process

5. Process improvement
Process is defined as a set of logically related activities performed to achieve a set of defined
business outcomes process improvement begins with collection of information about the
process, identifying each step in the process. Tools used in process improvement include:
- Creating thinking
- Brain storming
- Quality circles
- Letter viewing
- Benchmarking
- The 5W2H Approach (What, why, where, who, how and how much)
The new process developed should be aimed at reducing time, cost, space, waste, employee,
turnover working conditions, quality and customer satisfaction.
TQM Models and Frame works
1. The five pillars of TQM by Creech (1994)

Product Process

Organization
 Leadership Commitment

2. The Oakland’s model of TQM (1989)

Teams

Culture Communication
Process customer
Systems supplier
Tools
Commitment
3. The fair Ps and three Cs – A new model for QM (Oakland 2004)

Planning

Culture Communication
Performance

People Process
Commitment

4. An integrated model of TQM (Sohal,Tay & with 1989)

Quality
improvement

Statistical
Tools
Quality control TQM Mission
continuous
Quality

Systematic problem
solving focus
 Customer
focus

5. The Building Blocks Model of TQM Zaire (1991)

The Top

Quality planning leadership vision

for world class competitiveness

Management control
User supplier chain

Process flexibility

Workplace design
The pillar

system
SQC
SPC

Continuous improvement
Foundation

Added value management activity

Employee involvement

The model argues that TQM depends on those building blocks which together determine the
strength and safety of the organization.
The 10 step TQM Approach
1. Building organization commitment to quality
2. Focus on the customer
3. Find ways to measure quality
 4. Set goals and create incentives
5. Involvement of employee
6. Identify defects and Trace them to their cource
7. Introduce Just in Time systems (JIT)
8. Work closely with suppliers
9. Design for ease of manufacture and use
10. Breakdown barriers between organizations functions
Ten mantras of TQM
1. Quality is a never-ending accident; it is always the result of writing and intelligent effort.
2. Quality is like prayer to God which never comes out without hard work and devotion.
3. Quality is everybody’s business
4. Quality begins with the cleanliness of the work place
5. Take care of quality, quantity will take care of itself
6. Make it right first time and all times
7. Quality is achieved through team work
8. Documents are dependable but not the memory
9. Quality begins and ends with education
10. Quality is the attribute that a customer uses to evaluate products or services.
Benefits of TQM
- Better performance in meeting customer requirements
- Improved organization performance capability
- Greater knowledge and work satisfaction on that part of the organization’s
members
- Decreased time needed to complete a process, for instance decresed assembly line
time.
- Improvement in error rate i.e more invoices
TOPIC 7: QUALITY IMPRVEMENT TECHNIQUES
1. Benchmarking
According to Oakland (2000) benchmarking is the continuous process of measuring products,
services and process against those of industry leaders or the toughest competitors.
Reasons for Benchmarking
- Saves reinvention because there is almost always someone somewhere who has
solved your problem
- Helps in belting competition
- Helps in identifying gaps in performance and aids in closing the gap between
present quality & expectations
- Provides insights into new approaches (Innovations)
- Focusses on performance measures & processes
- Helps in establishing effective and realistic goals, visions
- Promotes the culture of a learning organization
- Helps in creating awareness of changing customer needs
- Provides an opportunity for sharing information among the process partners
Types of benchmarking
- Internal
- Functional
- Competitive
- Generic
The pre-requisites of Benchmarking
Benchmarking process requires the integration of both the soft and hard systems as shown
below

Organizational culture if Performance Measurement

empowerment
Benchmarking

Training & Technical skills

Strategic committee

The Benchmarking process

Motivation thought reward
Resource commitment
- Plan& recognition
- Collect Data
- Analyze the Data
- Adapt enablers
 Drawbacks of Benchmarking
- Waste of time and effort
- Success is often a matter of culture which is difficult to replicate
- Lead to shame culture whereby so called poor performers are despised
- Issues of ethics and legal questions may need to be addressed
- Does not identify reasons of the performance
- It is a catching up exercise rather than development
2. Business Process re-engineering
Re-engineering is using the power of information Technology to radically redesign
business processes to achieve dramatic improvement in performance
A process is a set of activities that taken together produces a result of value to the
customer.
BPR is defined as the fundamental rethinking and radical redesign of business process to
achieve dramatic improvements in critical contemporary measures of performance such
as cost, quality, service and speed.
The process of implementing BPR
Stage 1. The organization must have a clear understanding as to re-engineering is
needed.
Stage 2. Obtain the business unit leaders commitment
Stage 3. Identify the process need to be redesigned
Stage 4. Measure each process and its contribution
Stage 5. Design new process with help of IT.
Stage 6. Specify technical & social solutions needed to implement the process
Stage 7. Start implementing the process
Stage 8. Involves continuous redesign and improvement

The principles of BPR

- Strategic in concept
- Customer focused
- Focused on key business process
 - Process responsibility and decisions at the point where work is performed and
decisions at the point where work is performed
- Cross functional nature
- Involves external customers
- Involves senior management commitment
- Involves integration of people and technical aspects
- Requires clean communication and vision
- Has a mind set on radical improvement
- Everybody in the organization must be prepared to query the status of technology
practices, procdures and strategies.
Benefits of BPR
- Increased customer focus
- Improved profitability
- Improved quality and control
- Improved quality cooperate flexibility
- Enhanced speed and service delivery & responsiveness
- Improved measurability within the process operation and the management of that
information
Drawback of BPR
- Inadequate analysis, planning and assessment of the current process
- High cost of redesigning and time consumption
- People may fail to own up the initiatives
- Does not focus on the soft issues in the organization
- Founded on misconception relating to downsizing & restructuring
- The concept does not support teams & teamwork
- Relies heavily on investment on IT.

The Six – sigma

This is revolutionary business process which originated at Motorola in 1980’s and aims at
reducing organizational inefficiencies and achieve defect free processes and products.
Capability Index Percentage of output Defect free
6 - Sigma 99.99966%
5 - Sigma 99.97%
4 - Sigma 99.4%
 3 - Sigma 93.3%
2 - Sigma 69.2%
1 - Sigma 31%
0.5 -Sigma 16%
Six – Sigma can be considered as:
- A statistical measure of the performance of a process or a product
- A goal that reaches near perfection for performance improvement
- A system of management to achieve lasting business leadership and a world class
performance
Six – Sigma pre-requisites
- It involves high levels of commitment & involvement management
- Six sigma cannot be treated as standalone activity
- Six – sigma is about reducing the defects
- Six sigma is about needs to be concentrated on care elements of a business which
satisfy the customers more and causes than to deal with the company rather than
with its competitors
Core elements of six – sigma
- Focus on the customer
- Data and fact driven management
- Specific training
- Structured Approach. (Define, measure, analyze improve & control)
- Quality engineering
- Process focus, control and improvement
- Pro-active management
- Collaboration
- Short – term improvement projects
Six – sigma problem solving Approaches
1. Process improvement
- Define the problem (DMAIC)
- Measure (Output, Input & process)
- Analyze (Methods, machines, materials
- Improve
2. Process Design/redesign
- Control
- Define, measure, Analyze, Define & verifying
3. Process management
- Identifying the need
- Clarify the vision
 - Develop the plan
- Implement the plan
- Sustain improvement
Skills to Develop in a Six -sigma organization
- The skills to see a big picture
- The skills to gather data
- The skills to breakthrough old assumptions
- The skill to work collaboratively
- The skills to anticipate change
Conclusion
A well implemented six-sigma program requires the leadership involvement and sponsorships;
training the employees including the management of the entire organization, proper selection of
tools and analysis and proper measurement of performance. Similarly six-sigma programs
should be adequately communicated to the entire organization.
4. Suppliers Development
The quality of purchased supplier is crucial to an organization products and services and
consequent to its success in the market place. According to Lysons and Farringtom (2006)
supplier development is any activity that a buyer undertakes to implement a suppliers
performance and capabilities to meet the buyers short of long term needs.
Importance of supplier Development
- Reduction & elimination of the inspection of supplied parts and materials
- Improved products and service quality, delivery performance and responsiveness
- Improved productivity, increased stock turns and low inventory carrying costs
- Security and stability of suppliers
- Transfer of ideas, expertise and technology between customer and suppliers and
dissemination and implementing best practice.
- Joint problem-solving activities help improve processes
- A comprehensive customer supplier communication network
- It helps to develop sustainable growth of the suppler terms of investment In
equipment and manufacturing
- It helps in the pension of advisory services to suppliers
Stages in the supplier development
1. Make a commitment to supplier development
2. Audit and evaluate the internal standards
3. Define and quantify the necessary changes
4. Develop agreements with identified suppliers
5. Form joint teams and development training program
6. Definition of team objectives deliverable and time scale
7. Implementation of changes and monitoring impacts
 8. Supplier certification
Barriers to supplier Development
- Lack of customer credibility
- Poor communication and feedback system
- Supplier complacency
- Misguided supplier improvement objectives
5. People management
Oakland 2004 presented the key element of HR strategy in a PDCA Cycle as follows

PLAN
HR Director
Prepare and align HR plan

DO
Improve
Implement areas of HR
 Best practice.
 Benchmarking.  Selection &
 Self-assessment. recruitment.
 Quality committee.  Skill/competencies.
 Recommendation.  Appraisal.
 Reward recognition.
 Health and safety.
 Training.

CHECKS
 Quality committee Board
 Companywide self-assessment
 People survey
 Regular Board reviews

The HRM policies and practices that are critical to the success of TQM programs includes;
- Employee involvement.
- Empowerment.
 - Organizational culture.
- Recruitment selection & career development.
- Training and education.
- Performance appraisal.
- Compensation and recognition.
- Employee well- being.
- Motivation.
- Communication.
6. Other Quality Improvement Technique
i. Kaizen-
Japanese word which means continuous improvement.
The key aspect of Kaizen is that it is an ongoing never-ending improvement
process.
- Required things for successful implementation of Kaizen are operating
practices, total involvement and training.
ii. Poka Yoke
Development and refined by Shigco Shingo to track down defects. The Poka yoke
concepts adopts a zero-defect approach where in production process stops
whenever a defect occurs.

Sample questions;
1. Rotalink ltd is planning to purchase computer for the newly launched computer lab. The
manager has approached you to help in sourcing the best computer models. What quality
character would you advice the manager to look for when selecting the supplier.
2. Benchmarking is a new development in which most progressive organizations are
interested in. Discuss the strategies of integrating benchmarking into a TQM program.

QUALITY TOOLS AND MEASUREMENT

Measurement is the activity or the process of finding the size, length, or amount of something
by comparing it with a standard unit. Measurement helps to determine the level of customer
satisfaction whether the quality management system conforms to the whether requirements of
the international standards or whether the quality management system has been effectively
implemented and maintained.
What & where to measure.
- Customers perception.
- Repeat sales and customers.
- Costs relatives to manpower.
- Number of complaints and how they are solved.
- Customers survey reports.
- Analyzing the utilization of the TQM process.
- Employee involvement.
- Vendor quality ratings.
- Measuring the financial impact of TQM.
- Employee performance.
- Corporate culture.
- Top management involvement.
- Continuous learning and training.
- Customer communication.

Quality Tools
1. Histograms.
2. Tally charts.
3. Check sheets.
4. Graphs (line graph, Bar graphs, Gant charts etc.)
5. Run charts – a line graph in which data are plotted ever time.
6. Pareto charts – Also called 80/20 rule provides away of looking at data for quality
improvement. Pareto analysis involves ranking the collected data with the commonly
occurring problem at the top and the least at the bottom. The contribution of each
problem and cumulative percentages is used in compounding the effect of these
problems.
- The ranked data is presented as a bar chart and the cumulative percentage as a
graph.
7. Ishikava Diagram/fishbone diagram/cause-&- effect.
8. Process flow charts – provides pictorial representation of steps in work process.
9. Brainstorming – a technique for creative group thinking.
10. Scatter Diagrams.
11. Control charts; shows the results of statistical process control. They are used to monitor
the performance of a process and to determine whether the process is in control.
- Statistical process control helps to achieve process stability, provides guidance
and understand on how the process may be improved to reduce variation, to
assess the performance of the process and to provide information to assist
management in decision making.
- Causes of variability are either common causes (controlled) or special causes
(uncontrolled).
- Typical common causes include.
 Poorly maintained machines.
 Poor lighting.
 Variability of purchased materials.
 Poor work station layout.
 Poor instructions.
 Poor supervision.

Special causes include,

 Changes of operator.
 Changes of raw materials.
 Breakages.
 Misreading of scales.
  Change in machine setting.
 Failure to clean equipment.
 Keying in incorrect data.
SPC Control chart
Variable temperature
Special Causes
Upper control limit
Common Causes Central line

Lower control limit

Control charts for variable:
X =∑x
n

R= Largest – smallest
S = √∑(x – x)2
Mean control chart
Upper control limit UCL x = x + A2R
Lower control limit LCLx = x + A2R
Where A2 is a constant derived from statistical tables and depends upon the sample size
and R is the average of sample ranges.
Range control Chart
Upper control limit UCLR = D4R
Lower control limit LCL = D3R
Where D4 and D3 are constants derived from statistical tables and dendent upon the same size.
Example:
From a machine set – up to produce glass – beads each of 20gm, a sample of 5 beads is taken
every two hours and the data is as follows.
Sample No. 1 2 3 4 5 6 7 8 9 10
Mean [Link]. 2 2.10 2.15 2.19 2.04 2.05 2.0 2.15 2.17 2.1
Range in Kg 0.2 0.25 0.3 0.2 0.2 0.25 0.2 0.3 0.25 0.15
 - Draw a control chart of mean and examine whether the process is under control. You are
given that n=5 the m control factor for mean is 0.
x = =∑x = 20.95 = 2.095
n 10

R = = ∑ R = 2.3 = 2.095 = 0.23

n 10

- For control charts of X

X = 2.095 A2 = 0.58 for sample size of 0.5
UCL = x + A2R
= 2.095 + 0.58 x 0.23
= 2.2284
LCL = x - A2R
= 2.095 – 0.58 x 0.23
= 1.9616
UCL

2.23 CL
2.1
1.96 LCL

For control chart of R

R = 0.23 and D3 = 0 and D4 = 2.11 from table 5
UCL = D4 R = 2.11X 0.23=0.4853
LCL = D3R =0 X 0.23 = 0
Control charts for attributes;
- Used when the process characteristics is counted rather than measured.
- There are two types of attribute control charts one for the fraction of defectives
in a sample (P-chart) and one for the number of defects per units (ac – chart).

Control charts for fraction Defectives (P -charts)

- P – charts is used to monitor the proportion of defectives generated by a process.
- If a point falls above the UCL it indicates deterioration in quality. If the point falls below
the lcl shows improvement in situation.
- The center line on p- chart is the average fraction defectives in the population.

P =Total number of defectives in the samples

 Total number of units inspected
UCL = P +3 √p(1-p)
n

LCL = P −3 √ p (1-p)
n
Where P is the process average and n is the average sample size.
Example

Sample No 1 2 3 4 5 6 7 8 9
Each of 100
No of defectives 12 10 6 8 9 9 7 10 11
Fraction defective 0.12 0.1 0.06 0.08 0.09 0.09 0.07 0.1 0.11
P = 90 = 0.09
1000

a) Central line P = 0.09

b) UCL = P +3 √p(1-p)
n
= 0.09 + 3 √ 0.09)1 – 0.09)
1000

c) LCL = P −3 √ p (1-p)
n
= 0.09 – 0.0858
= 0.0042
Plot the graph
0.09 UCL
CL

LCL
Control chart for the number of defectives
(np – charts)
Step 1. find P = Total number of defective units
Total number of items inspected
Step 2. Calculate center line CL = np
Step [Link] = n p + 3 √ n p (1− p)
Step 4. LCL = n p - 3 √ n p ¿¿
Example:
Construct a suitable control chart for the following information and comment on the result.
Sample no of 100 1 2 3 4 5 6 7 8 9
No of defectives 12 10 6 8 9 9 7 11 11

P = 92 = 0.092
1000
n p= 100 x 0.092 = 9.2
UCL = n p+3 √ n p ¿ ¿ )
= 9.2 + 3 √ 9.2(1−0.0092)
= 17.87.
LCL = n p - 3 √ n p (1− p)
= 0.53

Plot the graph

0.09 UCL
CL

LCL
Control chart for the number of Defects.
(c – charts).
C = Total number of defects in all samples
Number of items inspected in all sample
The central line is c

UCL = C +3 ❑√C
LCL = C - 3❑√ C

Performance Measurement
- Strategy development & goal development.
- Process management & measurement.
- Individual performance & appraisal management.
- Performance review.
 TOPIC 8
QUALITY TEAMS AND QUALITY CIRCLES
Quality Teams
A team consists of two or more people with some shared purpose who assume different
responsibilities, depend on each other, coordinate their activities and see themselves as part of
the unit.
Advantages of team work
- Complex organization issues can be addressed by pooling expertise and resources
- The problem is opened to greater diversity of knowledge skill and experience
- Team work boots morale and ownership through participative decision making
- Improvement opportunities that are cross – functional or that involve more than one
department can be addressed conveniently
- The recommendations arrived at for quality improvement is more likely to be
implemented than if they come from an individual
- With all the members of the team being in the same establishment there is no delay in
exchanging information and opinion between member.
Types of teams
- Quality improvement team
- Project team s
 - Quality circles
Stages of team development
- Forming stage
- Storming stage
- Performing stage
- Adjourning stage
Guidelines for developing effective Teams
- Management commitment
- Awareness training & Education
- Setting clear objectives & goods
- Training on data collection and analysis
- Coaching and counselling
- Regular meetings
- Preparation of reports
- Provides recognition
- Regular performance review
Quality circles
Quality circle is a small voluntary group of people from the same work area who meet together
on a regular basis for the the purpose of identifying, selecting, analyzing and solving work
related problems of quality, productivity cost reduction, safety and customer service.
Importance of quality circles
- It helps in setting group objectives together which enhances teamwork
- Communication is improved across board
- It greatly enhances morale
- Encourages employee involvement & commitment
- Helps in the development of quality, problems improvement consciousness
- Promotes job satisfaction
The organization structure of a quality circle
- Members
- Leaders
- Facilitators
- Steering committee
- Management
How to promote quality circles
- Provision of training
 - Provision of enabling organization structures
- Encouraging participation
- Recognizing quality circle efforts
TOPIC 10 QUALITY MANAGEMENT SYSTEMS
A quality management system is defined as a set of coordinated activities to direct and control
an organization in order to continuously improve the effectiveness and efficiency of its
performance.
ISO 9000 standards
ISO is derived from greek word ISOs which means equal.
ISO – International organization for standardization
ISO – Established 1947 in Geneva Switzerland
ISO – Promotes & publish International standards of quality
ISO 9000 is one of the series of quality management standards that represent an International
concensus on excellent management practices which is aimed at ensuring that organization
deliver products and services which is aimed at ensuring that organization deliver products and
services that meet and even exceed customer expectations.
ISO 9000 – 2000 QMS fundamentals and vocabulary.
This standard describes the concepts of quality management systems and defines the
fundamental terms used in th ISO 9000 family. The standards also outlines the quality
management principles which were used to develop ISO 9001 and ISO 9004 standards.
- The quality management system concept Demings Cycle PDCA.
- Quality management principles include
i. Customer focus
ii. Leadership
iii. Involvement of people
iv. Process approach
v. System approach
vi. Continuous improvement
vii. Factual Approach to Decision making
viii. Mutual beneficial supplier relationship
ISO 9001 – 2000 QMS – Requirements
- Mnagement responsibility
- Resource management
- Product realization
- Measurement analysis and improvement
Documentation of a QMS
Documentation entails comprehensive practicable viable and important check points at every
stage of the system.
Why document procedures
- Ensures transparency of the organization activities
- Helps in identifying failures, weakness and inadequacy
- Helps in coordination of all the quality stakeholders to avoid duplication of work
- Helps in seeking formal certification
- Provides evidence of the activities of the organization
QMS Documentation
1. Quality policy
the quality policy may include the following
- A companys assurance of the commitment to providing quality products and services
- A companys strategy of involving everyone in the organization in quality improvement
- An assurance of what quality improvement will be a continuous process
- Organization declaration of the importance the customers and every supplier
- A strategy of involving suppliers in quality improvement efforts
- Emphasis on education and training in order to enhance quality improvement
- Publicity and communication of the quality policy will be made within the organization
so that everyone will understand it.
2. Quality objectives. Must be (SMART)
3. Quality manual
This is a document describing a companys overall quality policy, priorities and management of
quality.
A quality manual contains
- Quality policy
- Quality objectives
- Organizational structures
- Procedures
- Responsibilities and authorities
- Quality activities & planned verification
- Monitoring by means of internal audits
Reasons for preparing a quality manual
- To impress customer by projecting a company’s image
- To satisfy a specific customer requirement
 - To rationalize one’s own quality system
- To define and clarify quality department functions
- To facilitate the introduction of changes
- To permit the operation of adequate controls
- To provide for the audit system
- To meet international business standards
- To provide a means of communication
4. Quality procedures
Specifies what has to be done by whom, how, when and where it will be done. The
procedures required by ISO 9001 include the following.
- Control of documents
- Control of quality of records
- Internal quality audit
- Control of non-confirming products
- Corrective action
- Preventive action
Quality Audit
A quality audit is a system and impendent examination to determine whether quality objectives
and related results comply with planned arrangements and whether these arrangements are
implemented effectively and are suitable to achieve objectives.
The Rationale Quality Audit
- To determine the conformity or non-conformity of the quality system elements with
specified requirements
- To determine the effectiveness of the implemented quality system in meeting specified
objectives
- To afford opportunity to improve the system
- To compare practice with procedures
- To provide evidence that the system is in compliance with the standard and hence help
in the certification process
- To evaluate supplier before establishing a contractual obligation
- To verify whether procedures and instructions are being implemented
- To access if products are meeting the customers quality requirements
Types of audit
- Systems Audit (internal, supplier, & External Audits)
- Process Audit
- Product Audit
Construction of a quality management system
 - Obtain mgt understanding of & commitment to the quality mgt approach
- Define the scope of activities to be included in quality
- Define the organizational structure and responsibilities of those within the scope of
QMS.
- Audit the existing systems and procedures against the requirements of the standard
- Develop a plan to write the necessary procedures
- Train sufficient personnel to write their own procedures
- Draft and edit the procedures and gain the agreement of them
- Compile a draft quality manual
- Implement the system on a trial basis
- Train internal auditors
- Revise the operation of the system as per the audit report
- Apply for registration from an accredited body
- Maintain the system by internal audit
ISO 1400 Standards
The ISO 14000 series of standards for environmental management was launched in 1996 in
response to rising awareness of damage to the environment and the need for a common set of
standards which could be adopted by any organization.
The standard is applicable to any organization that wishes to
i. Implement, maintain & improve an environment management system
ii. Assure itself of its conformance with stated environmental policy
iii. Demonstrate such conformance to others
iv. Seek certification/registration of its environmental mgt system
v. Make a self-decoration of conformance with the standard
Environmental mgt system Model

Environmental policy

Planning

Implementation & operation

Continual
Management review
Improvement

Checking and corrective actions

Benefits of Environmental management system
- Meeting and anticipating Environmental needs
- Meeting customer requirements
- Enhancing public image
- Improving profitability by minimizing waste and reducing resource consumption
- Satisfying investor criteria and enhancing access to source of capital
- Reducing cost of litigation that arise with environmental damage
- Enhancing industry and government regulations
- Helps in accessing global markets especially those markets that buy from more
environmentally friendly sources
ISO Certification
Certification is the procedure and action by a duly authorized body attesting in writing about
the qualification of quality system in accordance with the applicable ISO Standards
Benefits of becoming ISO Certified Organization
- Build customer confidence on the organizations products
- The quality system implemented improves efficiency
- ISO certification enhances the quality image of the company in the eyes of the public
and gives a competitive edge over others
- ISO Certification motivates employees
- Helps in reducing litigation
- Used as a marketing tool
Barriers to ISO 9000 Certification
- Lack of resources
- High certification standards
- Resistance to change by management

TOPIC 11 IMPLEMENTATION OF TQM AND THE MANAGEMENT OF CHANGE

TOPIC 12 QUALITY MANAGEMENT AWARDS AND FRAMEWORKS