Quality Management

By

S.N Mishra
QUALITY MANAGEMENT

Dr Sunil Kumar 2
 Definition of Quality
Management
Components of Quality
Dimensions of Quality •Planning
•Assurance
•Cost
•Control
Quality
Pareto Principle
Managemen Total Quality
t Management

Optimizing Quality Cost Service Quality

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 DEFINITION OF QUALITY

• “It is a process that ensures the quality of the product

through out its life cycle.”
• It try to manage all aspects of the organization in order
to excel in all dimensions that are important to
customers.
• Two aspects of quality:
Features: more features that meet customer
needs = higher quality
Freedom from trouble: fewer defects = higher
quality

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 ROLE OF QUALITY MANAGEMENT

• Increase the customer satisfaction.

• Increase the production of processes.
• Decrease the risk in any process involved.
• To determine the areas of improvement and document them.
• Ensure that procedures conform to legislations.
• Develop new plans to improve the existing quality system

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DIMENSIONS OF QUALITY

Dr Sunil Kumar 6
 DIMENSIONS OF QUALITY
• Performance: Performance refers to a product's primary
operating characteristics. This dimension of quality
involves measurable attributes; brands can usually be
ranked objectively on individual aspects of performance.

• Features: Features are additional characteristics that

enhance the appeal of the product or service to the user.

• Reliability: Reliability is the likelihood that a product

will not fail within a specific time period. This is a key
element for users who need the product to work without
fail.
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 DIMENSIONS OF QUALITY
• Conformance: Conformance is the precision with which the
product or service meets the specified standards.

• Durability: Durability measures the length of a product’s life.

When the product can be repaired, estimating durability is more
complicated. The item will be used until it is no longer
economical to operate it. This happens when the repair rate and
the associated costs increase significantly.

• Serviceability: Serviceability is the speed with which the

product can be put into service when it breaks down, as well as
the competence and the behavior of the service person.
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 DIMENSIONS OF QUALITY

• Aesthetics: Aesthetics is the subjective dimension indicating

the kind of response a user has to a product. It represents the
individual’s personal preference.

• Perceived Quality: Perceived Quality is the quality attributed

to a good or service based on indirect measures.

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 COMPONENTS OF QUALITY

Planning Assurance Cost

Control Improvememt

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 PLANNING
• Quality control planning is the first step.
• Requirements must be identified, a criteria needs to be
set,
• Important procedure must be recognized as a part of the
plan.
• A quality plan sets out the desired product qualities and
how these are assessed and define the most significant
quality attributes
• It should define the quality assessment process
• It should set out which organisational standards should be
applied and, if necessary, define new standards
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 PLANNING STRUCTURE
• Product introduction
• Product plans
• Process descriptions
• Quality goals
• Risks and risk management
• Quality plans should be short, succinct documents
• If they are too long, no-one will read them

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 QUALITY CONTROL
• Quality control is needed to review the quality of the
product or service.

• Inspection and testing is necessary to identify

problems and defects that need correction.

• Quality Control focused on fulfilling quality

requirements.

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 OBJECTIVES OF QUALITY CONTROL

• To establish the desired quality standards which are

acceptable to the customers?
• To discover flaws or variations in the raw materials and the
manufacturing processes in order to ensure smooth and
uninterrupted production.
• To evaluate the methods and processes of production and
suggest further improvements in their functioning.
• To study and determine the extent of quality deviation in a
product during the manufacturing process.
• To analyze in detail the causes responsible for such deviation.
• To undertake such steps which are helpful in achieving the
desired quality of the product.
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 QUALITY ASSURANCE
• Companies need to assure defects and mistakes are
avoided in the manufacturing of good or the delivery of
service,

• Quality assurance guarantees consistent results.

• Quality Control focused on providing confidence that

quality requirements will be fulfilled.

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 STAGES OF QUALITY ASSURANCE

• Understand the customer needs

• Define the objectives
• Designing the product
• Prototyping
• Quality Testing
• Customer approval
• Product pilot test
• Quality test
• Customer feedback
• Manufacturing
• Follow up customer feedback 16
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QUALITY ASSURANCE VS QUALITY
CONTROL

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 QUALITY IMPROVEMENT
• There is always room for improvement.
• Through quality improvement, the results can be
measured and possible improvements in products or
services can be made.
• It is a systematic, formal approach to the analysis of
practice performance and efforts to improve
performance. A variety of approaches—or QI models
—exist to help you collect and analyze data and test
change.

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 PDCA: Plan-Do-Check-Act
It is a cyclic method for continuous improvement of processes

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PROCESS IMPROVEMENT
Kaizen Implementation

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 QUALITY COST
• Quality costs are the all the costs that a manufacturer
incurs to ensure it produces a quality product.

• Quality costs include both costs to prevent low-

quality production and costs that arise after a
low quality product is produced.

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 Quality costs fall into four categories, which are:

• Prevention costs. You incur a prevention cost in order to keep a quality

problem from occurring.

• Appraisal costs.

• Internal failure costs.

• External failure costs.

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 QUALITY COST

Category Definition Example

Training, early reviews, quality
Costs associated with preventing
Prevention defects.
planning, tools, process improvement
initiatives.
Costs associated with analyzing
Inspections, testing, audits, quality
Appraisal and testing the product to ensure
control.
it conforms to specifications.
Internal Costs associated with fixing Repair, retesting, updating
Failure defects found prior to release. documentation.
Technical support, defect reporting
External Costs associated with fixing
and tracking, field updates, loss of
Failure defects found after release.
future sales.

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 TOTAL QUALITY MANAGEMENT

• Total quality management (TQM) has been defined as an integrated

organizational effort designed to improve quality at every level.

• The process to produce a perfect product by a series of measures require an

organized effort by the entire company to prevent or eliminate errors at every
stage in production is called total quality management.

• According to international organization for standards defined tqm as, “TQM is a

management approach for an organization, centered on quality, based on the
participation of all its members and aiming at long-term success through customer
satisfaction and benefits to all members of the organization and to the society.

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 CHARACTERISTICS OF TQM
• Committed management.
• Adopting and communicating about total quality management.
• Closer customer relations.
• Closer provider relations.
• Benchmarking.
• Increased training.
• Open organization
• Employee empowerment.
• Flexible production.
• Process improvements.
• Process measuring
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 CONCEPT 0F TQM

• Produce quality work the first time.

• Focus on the customer.

• Have a strategic approach to improvement.

• Improve continuously.

• Encourage mutual respect and teamwork.

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 STEPS OF TQM
• Project Selection.
• Set up Data Collection System.
• Analyse Data Collected.
• Diagnose Route Cause.
• Select and Implement Solution.
• Confirm validity of solution.
• Standarize new ways of business.
• Setup maintenance system.
• Review Improvement Process.

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 BENEFITS OF TQM

• Improved quality.
• Employee participation.
• Team work.
• Working relationships.
• Customer satisfaction.
• Employee satisfaction.
• Productivity.
• Communication.
• Profitability.
• Market share.
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 THREE ASPECTS OF TQM
• COUNTING-Tools, Techniques and training in their use for
analyzing, understanding, and solving quality problems.

• CUSTOMER-Quality for the customer as a driving force and central

concern.

• CULTURE-Shared values and beliefs, expressed by leaders, that

define and support quality

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 TRADITIONAL APPROACH
Traditional Approach
AND TQM
Basis for differentiation TQM
Definition Product oriented Customer oriented

Priorities Second to service and cost First among equals of service and
cost
Decisions Short term Long term

Emphasis Detection Prevention

Errors Operation Systems

Responsibility Quality control Everyone

Problem solving Managers Team

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 PRINCIPLES OF TQM

• Produce quality work the first time and every time.

• Focus on the customer.

• Have a strategic approach to improvement.

• Improve continuously.

• Encourage mutual respect and teamwork

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 SERVICE QUALITY

• Customer judgement of overall excellence of the service provided in

relation to the quality that was expected.

• It is the way a person interprets reality or quality.

• Continuously meeting agreed customer requirement at the lowest cost

by releasing the potential of all employees.

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 PRINCIPLES OF SERVICE QUALITY

• Customer focus
• Leadership
• Involement of people
• Process approach
• System approach to management
• Approach to decision making
• Mutual beneficial suppliar relationship
• Continual improvement

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 OBJECTIVES OF SERVICE QUALITY

• To meet assessed needs

• To concentrate on service users
• To work for the complete dignity & wellbeing of
service users.
• To ensure that we are fit to provide service.
• To provide the highest quality comprehensive service
to all customers
• To work with customers to enhance the quality of their
daily life.
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 PROCESS OF SERVICE QUALITY

• Service quality planning

-Setting goals for customer delivery
• Service quality control
-Controlling service flows by measuring for success
• Service quality management
-Involving the employees
• Service quality improvement
-Consistent improvement of service/product

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 DIMENSIONS OF SERVICE QUALITY

• Reliability
• Perform promised service dependably and accurately. Examples: delivered home
heating oil on schedule, correct diagnosis and treatment of a medical problem.
• Responsiveness
• Willingness to help customers promptly. Example: avoid keeping customers
waiting for no apparent reason.
• Assurance
• Knowledge and courtesy of employees. Ability to convey trust and confidence.
Example: being polite and showing respect for customer.
• Empathy
• Providing caring, individualized attention to customers. Example: being a good
listener.
• Tangibles
• Physical facilities and facilitating goods. Example: cleanliness.
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 PERCIVED SERVICE QUALITY
Word of Personal Past
mouth needs experience

Expected
Service Quality Service Quality Assessment
service
Dimensions 1. Expectations exceeded
Reliability ES<PS (Quality surprise)
Responsiveness 2. Expectations met
Assurance Perceived ES~PS (Satisfactory quality)
Empathy service 3. Expectations not met
Tangibles ES>PS (Unacceptable quality)

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SERVICE QUALITY GAP MODEL

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 PARETO PRINCIPLE
NAMED AFTER VIFREDO PARETO AN ITALIAN
ECONOMIST

• He observed in 1906 that 20% of the Italian population owned 80% of

Italy's wealth.

• • He then noticed that 20% of the pea pods in his garden accounted
for 80% of his pea crop each year.

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 PARETO PRINCIPLE
• A small number of causes is responsible for a large percentage of the
effect -usually a 20-percent to 80-percent ratio.

• This basic principle translates well into quality problems - most

quality problems result from a small number of causes.

• You can apply this ratio to almost anything, from the science of
management to the physical world

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PARETO PRINCIPLE

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 EXAMPLES OF PARETO PRINCIPLE
• 20% of the input creates 80% of the result.
• 20% of the bugs cause 80% of the crashes.
• 80% of customer complaints arise from 20% of your products or services.
• 80% of the work is usually done by 20% of the people.
• 80% of the quality can be gotten in 20% of the time perfection takes 5 times
longer.
• 80% of your staff headaches come from 20% of our employees
• 80% of our personal telephone calls are to 20% of the people in our address
book.
• In most parties 80% of the beer will be consumed by 20% of people.
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 WHAT IS PARETO CHART?
• A Pareto Chart is a series of bars whose heights reflect the frequency or
impact of problems.

• The bars are arranged in descending order of height from left to right.

• This means the categories represented by the tall bars on the left are
relatively more significant then those on the right.

• This bar chart is used to separate the “vital few” from the “trivial many”.

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 WHY PARETO CHART IS USED?
• A Pareto Chart breaks a big problem down into smaller pieces,
identifies the most significant factors, shows where to focus efforts,
and allows better use of limited resources.

• You can separate the few major problems from the many possible
problems so you can focus your improvement efforts, arrange data
according to priority.

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MANAGEMENT
TOOLS….

PRESENTED BY:
What this topic all about ?

• What actually quality management is ?

• Quality + Management = Quality Management

• Quality Management tools.

• Need of Quality Management tools for managers

• Conclusion

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 QUALITY MANAGEMENT..
• Quality management is the act of overseeing different activities and tasks within an organization to
ensure that products and services offered, as well as the means used to achieve them, are
consistent.

• It helps to achieve and maintain a desired level of quality within the organization.

• The aim of quality management is to ensure that all the organization’s stakeholders work together
to improve the company’s processes, products, services, and culture to achieve the long-term
success that stems from customer satisfaction.

• It helps an organization achieve greater consistency in tasks and activities that are involved in the
production of products and services.

• It increases efficiency in processes, reduces wastage, and improves the use of time and other
resources.

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QUALITY MANAGEMENT(contd.)
• It helps improve customer satisfaction.

• It enables businesses to market their business effectively and exploit new markets.

• It makes it easier for businesses to integrate new employees, and thus helps businesses
manage growth more seamlessly.

• It enables a business to continuously improve their products, processes, and systems.

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QUALITY MANAGEMENT
TOOLS..

FLOW CHART
PARETO CHART CONTROL CHART

SCATTERED
CAUSE EFFECT DIAGRAM
HISTOGRAM

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FLOWCHART…
• We all are familiar with “Flowchart” since our school or college days. A flowchart is a diagram
which represents a workflow process, algorithm, or a step by step process connected by arrows in
different directions.

• These flowcharts are used for the representation of organizational structures, Login System,
document work process flow, billing transaction flow etc.

• Flowchart allows identifying the actual flow of events in a system.

• It is the step of the process that will provide information or picture of what the process looks like
and throw some light on the quality issues. Flowchart helps in identifying where exactly the
quality issue is in the process.

• Here, every step is an action and result of it produces an output which is again used as an input to
the next step.

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FLOWCHART(contd.)
• Given below is an Example of sample flowchart of the kitchen department or kitchen hierachy
of a five star hotel.

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HISTOGRAM…
• A common graphical tool used to portray and visualize the distribution of a set of data is the
histogram. It shows the form of the distribution by establishing the frequency of the data within
a certain range.

• The histogram is constructed by taking the difference between the minimum and maximum
observations and dividing it into evenly spaced intervals.

• Then, the number of observations in each interval is counted and the frequency is plotted as the
height of a bar on the graph.

• The histogram is, in essence, a simplified view of the distribution that generated the plotted data.

How to Use:
• Step 1. Collect variable data (length, distance, weight, time, etc).
• Step 2. Generate the graph as a histogram, either with an application or manually.
• Step 3. Draw your conclusions.
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HISTOGRAm(Contd.)
Parts of a Histogram:

• The title: The title describes the information included in the histogram.
• X-axis: The X-axis are intervals that show the scale of values which the measurements fall under.
• Y-axis: The Y-axis shows the number of times that the values occurred within the intervals set by
the X-axis.
• The bars: The height of the bar shows the number of times that the values occurred within the
interval, while the width of the bar shows the interval that is covered. For a histogram with equal
bins, the width should be the same across all bars.

Example of a Histogram

• Jeff is the branch manager at a local bank. Recently, Jeff’s been receiving customer feedback
saying that the wait times for a client to be served by a customer service representative are too
long. Jeff decides to observe and write down the time spent by each customer on waiting. Here
are his findings from observing and writing down the wait times spent by 20 customers:

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HISTOGRAm(contd.)

We can see that:

There are 3 customers waiting between 1 and 35 seconds
There are 5 customers waiting between 1 and 40 seconds
There are 5 customers waiting between 1 and 45 seconds
There are 5 customers waiting between 1 and 50 seconds
There are 2 customers waiting between 1 and 55 seconds

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CAUSE & EFFECT CHART…
• Cause-Effect is also known as Fish-bone diagram as the shape is somewhat similar to the
side view of a fish skeleton. During problem-solving, everyone in the team has a different
opinion about the root cause of the issue or problem.

• Fish-bone diagram captures all causes, ideas and uses brainstorming method to identify the
strongest root cause.

• Cause-Effect diagram records causes of specific problems or issues related to the processor
system. You will get many different causes for a specific problem.

• To start with the fishbone, you need to state your problem as a question, that too in terms of
“why”. This will help in brainstorming as each question should have an answer. In the end,
the entire team should agree on the problem statement and then place this question at the
“head” of the fish-bone.

• The rest of the fishbone then consists of one line that is drawn horizontally across the page
attaching the problem statement at the head and a vertical line drawn as branches or bone.

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• For example, a hotel manager wants to investigate why guest rooms are not ready for check-in
at 4:00 PM. The manager brainstorms reasons with the improvement team and creates a cause-
and-effect diagram to categorize the reasons. The team can then prioritize problem areas and
develop improvement ideas.

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SCATTER DIAGRAM..
• Scatter diagrams are graphs that show the relationship between variables. Variables often
represent possible causes and effect.

• As an example, a scatter diagram might show the relationship between how satisfied volunteers
are that attend orientation training.

• The diagram shows the relationship between volunteer satisfaction scores and volunteer
orientation training.

Dr Sunil Kumar 59
CHECK LIST…
• A check sheet is a basic quality tool that is used to collect data. A check sheet might be used to
track the number of times a certain incident happens.

• The Check sheet is used to collect data and information in an easy format.

• It increases accuracy in the data collection process with easy method and format. It
significantly reduces efforts for data collection as well. This data collection is based on actual
facts and figures rather than any imaginary numbers and item.

• The check sheet is updated by recording “marks” or “checks” on it. In the below Example, the
Human Resource Department tracks the number of questions raised on each day under
different categories.

• Thus the below table shows the total number of questions raised in the Human Department by
different category like Health Insurance, Sick Time, Paid Time off etc. It also provides
information on the total number of questions raised on each day in a week.

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CHECK LIST…(CONT.)

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PARETO’S CHART:
• A Pareto chart is a bar graph of data showing the largest number of frequencies to the smallest.
• Pareto analysis is based around the 80/20 rule, whereby often the vital few things cause the
biggest effect.
• That’s 80% of sales come from 20% customers…
• 80% of defects come from 20% root causes…
• It might not be exactly 80/20, but you’ll find that the vital few things cause the major effect.
• It’s simple in its approach.
• And it’s depicted in the form of a bar chart, whereby frequency or impact is show in descending
order, against specific cause codes, or reasons of failure / problems.
• Using this method, you can quickly, see the biggest impact from the vital few causes.
• And once you have this information, you can get to work improving the vital few root causes.

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• In this example, we are looking at the number of product defects in each of the listed categories.
• When you look at the number of defects from the largest to the smallest occurrences, it is easy to see
how to prioritize improvements efforts.
• The most significant problems stand out and can be targeted first.

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CONTROL CHART:

• Control charts or run charts are used to plot data points over time and give a picture of the
movement of that data.
• These charts demonstrate when data is consistent or when there are high or low outliers in the
occurrences of data.
• It focuses on monitoring performance over time by looking at the variation in data points. And
it distinguishes between common cause and special cause variations. The Dow Jones Industrial
Average is a good example of a control chart.

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CONTROL CHART(CONTD.)

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IMPORTANCE OF QUALITY
MANAGEMENT TOOLS..

HIGHER
PRODUCTIVITY BEAT THE
LEVELS COMPETITION IN
CUSTOMER
THE MARKET
SATISFACTION

ATTRACTS
LOYAL SET OF CAUSE AND
CUSTOMERS EFFECT
RELATIONSHIP

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QUALITY LEADERSHIP
 QUALITY
• The quality is a distinctive attribute or
characteristic possessed by someone
or something.
• Quality is doing the right things right
and is uniquely defined by each
individual. — A product or process that
is Reliable, and that performs its
intended function is said to be
a quality product.

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LEADERSHIP

• Leadership is both a research area

and a practical skill encompassing the
ability of an individual
or organization to "lead" or guide
other individuals, teams, or
entire organizations.

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QUALITY LEADERSHIP

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• Quality leadership is where quality principles become “a
basis for guiding, empowering and supporting the
constant pursuit of excellence by the employees
throughout the organization.”

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CHARACTERISTICS OF A GOOD LEADER

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1. Honesty and Integrity

• Honesty and integrity are two important

ingredients which make a good leader.
• How can you expect your followers to be
honest when you lack these qualities yourself?
• Leaders succeed when they stick to their values
and core beliefs and without ethics, this will not
be possible.

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2. Confidence

• To be an effective leader, you should be

confident enough to ensure that other follow
your commands.
• If you are unsure about your own decisions
and qualities, then your subordinates will
never follow you.
• This does not mean that you should be
overconfident, but you should at least reflect
the degree of confidence required to ensure
that your followers trust you as a leader.

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3. Inspire Others

• Probably the most difficult job for a leader

is to persuade others to follow.
• It can only be possible if you inspire your
followers by setting a good example. If you
handle the situation well, they will follow
you.
• As a leader, should think positive and this
positive approach should be visible
through your actions.

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4. Commitment and Passion

• Your teams look up to you and if you

want them to give them their all,
you will have to be passionate about
it too.
• If they feel that you are not fully
committed or lacks passion, then it
would be an uphill task for the
leader to motivate your followers to
achieve the goal.

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5. Good Communicator

• A good communicator can be a

good leader. Words have the
power to motivate people and
make them do the unthinkable. If
you use them effectively, you can
also achieve better results.

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6. Decision-Making Capabilities

• Decisions taken by leaders have a

profound impact on masses.
• A leader should think long and hard
before taking a decision but once the
decision is taken, stand by it.

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 MOTIVATION

• Motivation is an important
factor which encourages
persons to give their best
performance and help in
reaching enterprise goals.

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 NATURE OF MOTIVATION
• 1. Motivation is an inner feeling which energizes a person to work more.
• 2. The emotions or desires of a person prompt him for doing a particular work.
• 3. There are unsatisfied needs of a person which disturb his equilibrium.
• 4. A person moves to fulfill his unsatisfied needs by conditioning his energies.
• 5. There are dormant energies in a person which are activated by channelizing
them into actions.

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Strategies for achieving a motivated workforce:

• Start with individuals

• Get the basics right
• Trust your people
• Show them the big picture
• Be open and transparent
• Set small, achievable goals
• Recognize and reward
• Give frequent feedback
• Provide career development
• Offer flexibility and regular breaks
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 EMPLOYEE EMPOWERMENT

• Employee Empowerment in work setting means

giving employees the means, ability, and
authority to do something.

• It involves efforts to take full advantage of

organisation’s human resources by giving
everyone more information and control over
how they perform their jobs.

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• Continued….

• Various techniques of empowerment range from participation in

decision-making to the use of self-managed or empowered teams.

• Employees’ empowerment is the process of sharing power with

employees, thereby enhancing their con­fidence in their ability to
perform their jobs, and their belief that they are influential
contributors to the organization.

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TEAM

• A team means a group of

employees who are working
together on either a temporary or
a permanent basis to achieve a
common objective.

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 Recognition and Rewards

• Employee recognition is the acknowledgment

of a company’s staff for exemplary
performance.
• Appreciation is a fundamental human need.
Employees respond to appreciation
expressed through recognition of their good
work because it confirms their work is valued
by others.

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• Continued….

• When employees and their work are valued, their satisfaction and
productivity rises, and they are motivated to maintain or improve their good
work.
• Praise and recognition are essential to an outstanding workplace.
• People want to be respected and valued by others for their contribution.
• Everyone feels the need to be recognized as an individual or member of a
group and to feel a sense of achievement for work well done or even for a
valiant effort.
• Everyone wants a ‘pat on the back’ to make them feel good.

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GAIN SHARING

• Gains sharing, is a system that businesses use

to try to get their employees to become more
productive.
• It is a management system to increase
profitability by motivating workers to boost
their performance through participation and
involvement.
• As their productivity increases, so do the
company’s profits. Workers subsequently
share financially in the improvement.

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 Performance Appraisal

• A performance appraisal is a regular review

of an employee's job performance and
overall contribution to a company.
• Companies use performance appraisals to
give employees big-picture feedback on their
work and to justify pay increases and
bonuses, as well as termination decisions.
• They can be conducted at any given time but
tend to be annual, semi-annual or quarterly.

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Employee Involvement

• The direct participation of staff to

help an organization fulfill its
mission and meet its objectives by
applying their own ideas, expertise,
and efforts towards solving
problems and making decisions.

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 Benefits of Employee Involvement

• Improved Morale
• Increased Productivity
• Innovation
• Motivated workforce
• Customer satisfaction
• Improves communication
• Stress reduction

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CUSTOMER SATISFACTION

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 MEANIN
G
• It is a measure of how products and services supplied by a
company meet or surpass the customer’s expectations.
• Customer expectation is the needs, wants, and
preconceived ideas of a customer about a product or a
service.
• If customer expectations are met then the customer is
satisfied. 92
 WHO ARE
CUSTOMERS

• Internal Customer : are people, departments,

units and groups within an organization served by
what we do.

• External Customer : are end users of the

organization's product or services depositors,
borrowers, investors, etc.
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 Why customer satisfaction
• Customer is the boss of the market.
• Customer dictates market trends and direction.
• The organization is dependent on the customer and not the
other way round.
• Customer satisfaction means loyalty towards the organization.
• The satisfied customers will help in bringing the new
customers by the “word of mouth”.
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 Factors affecting customer
satisfaction
• PRICE - micromax
• QUALITY - rolls
royce
• SERVICE - dell
• BRAND NAME -
apple
• REPUTATION - 95
96
97
 LEVELS OF
CUSTOMER
SATISFACTION

1. Basic Needs (Dissatisfiers)

• A service that the costumer takes for granted. He expects it to be present in

the
product.
• Absence of this need will lead to dissatisfaction for the customer but the
presence of it will not lead to any satisfaction as such.

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• Performance needs (satisfiers)

• It is a need or want of the customer which he

specifically asks for.
• Better the performance more will be the satisfaction of
the customer.
• These factors becomes the benchmarks in the
competitive market.

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• Excitement Needs (delighters)

• A delighter is an unspoken or unexpected requirement

of a customer.
• It leads to very high level of satisfaction or customer
delight.
• Absence of delighters does not result in
customer dissatisfaction while its presence will
enhance customer satisfaction.
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 CUSTOMER SATISFACTION FACTS

• 5% increase in loyalty can increase profits by 25% to

85%.
• Only 4% of unsatisfied customers will complain.
• An unhappy customer tells 9 other people.
• A happy customers tells to about 5 other people.
101
 CUSTOMER SATISFACTION
PROCESS

• Step Understanding customer

1: expectations Promises to
• Step customers
2:
Execution
• Step
3: Ongoing dialog with a
• Step customer Customer
4:
102
satisfaction surveys
 CUSTOMER RETENTION
• Customer satisfaction should lead to customer loyalty and
customer retention.

• This is the real test and bottom line- when the customer repeatedly
comes back to you for repeat orders and to purchase new products
manufactured by you. (In spite of stiff competition and multiple
Suppliers/Sources! )

• Firm orders received or cash payments registered , market share,

customer referrals and customer retention are an indication of your
customer success and penetration in the market. 103
 CUSTOMER FEEDBACK

• Customer feedback must be continually done

and monitored.
It enables an organization to:
• Discover customer’s dissatisfaction
• Discover relative priorities of quality
• Identify customer need
• Determine opportunities for improvement
104
 How to ensure customer
satisfaction

• Surveys
• Customer feedback
• Comparison with
alternatives
• Employee feedback
• Internet/blogs
• Toll free numbers
105
 Quality and customer
expectations
• Quality is defined as excellence in the product or service
that fulfil or exceeds the expectations of the customer.
• There are 9 dimensions of quality that may be found in
products that produce customer satisfaction.
• Though quality is an abstract perception, it has a
quantitative measure Q= (P / E ) , where Q=quality,
• P= performance(as measured by the
manufacturer.), and E = expectations( of the
customer).

106
9 Dimensions Of
Quality

107
SERVICE QUALITY
MANAGEMENT

BY: CHANDRACHUR SINGH WALDIA.

MBA culinary arts .
Dr Sunil Kumar 108
What is Service Quality Management?

❖ The process of managing the quality of services delivered to a customer according to his
expectations is called Service Quality Management.

❖ It basically assesses how well a service has been given, so as to improve its quality in
the future, identify problems and correct them to increase customer satisfaction.

❖ Service quality management encompasses the monitoring and maintenance of the

varied services that are offered to customers by an organization.

❖ SERVQUAL service quality model is widely known, empirically tested, and

generally accepted definition of quality in the service literature. It highlights the main
components of high quality service.
Dimensions of Service Quality
•Reliability – This is the ability to perform the service dependably and accurately, as promised. In software
service, it would be the correct technical functioning of the application and various features such as GUI
features, billing, product information etc.

•Responsiveness – How quickly the services are rendered to the customer and the promptness of service
delivery. With respect to software services, it would be the ability to respond to customer problems or give
solutions.

•Assurance – This is a measure of the ability to convey trust to the customers and how well they extend the
courtesy. Software assurance involves the amount of confidence the customer has in handling the software
application or navigating a site, the belief he has on the information provided and its clarity, reputation etc.

•Empathy – Giving personalized attention, understanding the requirements and caring for the customers. The
software service would include customized applications, one-to-one customer attention, security privacy and
understanding customer preferences.

•Tangibles – The physical attributes like appearance, equipment, facilities etc. When we speak of software
services, the tangibles would be aesthetics of the software application or website, navigation features,
accessibility, flexibility etc.
 Responsiveness
Assurance
Do it now.
Know what your doing.

Empathy
Care about them. Tangibles
Reliability Look sharp.
Just do it.
QUALITY SERVICE DELIVERY GAPS :

• Gap 1: between consumer expectation and management perception - When the management does
not correctly perceive what the customers want.

• Gap 2: between management perception and service quality specification - Not setting appropriate
performance standard. example would be when hospital administrators instruct nurses to respond to a
request ‘fast’, but may not specify ‘how fast’.

• Gap 3: between service quality specification and service delivery - Poorly trained personnel,
incapable or unwilling to meet the set service standard.

• Gap 4: between service delivery and external communication - Statements made by company
representatives and advertisements.

• Gap 5: between expected service and experienced service - Consumer misinterprets the service
quality.
 Process of service quality management:

Identifying
Managing customer Educating customer
primary quality Managing evidence
expectations about the service
determinants

Following up the Automating quality Developing quality culture

services.
IMPROVING SERVICE QUALITY :

• Look at incorporating the clients’ requirements into the recruitment and selection process.

• Maintain a sensitive and efficient feedback system.

• Establish standard operating procedures.

• Set clear standards of performance detailing the minimum operating criteria and revisit them often.

• Focus on training and retraining, especially on the job.

• Motivate your staff.

• Having a clear concept of the position that you want to occupy in the market place.

• Strong Recovery Strategies.

IMPORTANCE OF SERVICE QUALITY MANAGEMENT:

• Ensures superior, quality products and services.

• Essential for customer satisfaction which eventually leads to customer loyalty

• Helps an organization to design and create a product which the customer actually wants and desires.

• Ensures increased revenues and higher productivity for the organization.

• Ensures close coordination between employees of an organization.

Return on Quality ROQ approach is based on four assumptions:

1. Quality is an investment.

2. Quality efforts must be financially accountable.

3. It’s possible to spend too much on quality.

4. Not all quality expenditures are equally valid .

SOFT AND HARD MEASURES OF SERVICE QUALITY:

• Soft measures—not easily observed, must be collected by talking to customers, employees, or

others
 Provide direction, guidance, and feedback to employees on ways to achieve customer satisfaction
 Can be quantified by measuring customer perceptions and beliefs
 For example: SERVQUAL, surveys, and customer advisory panels .

• Hard measures—can be counted, timed, or measured through audits

 Typically operational processes or outcomes
 Standards often set with reference to percentage of occasions on which a particular measure is
achieved
 Control charts are useful for displaying performance over time against specific quality standards
TOOLS TO ANALYZE AND ADDRESS SERVICE QUALITY PROBLEMS :

❑ Fishbone diagram –

Cause-and-effect diagram to identify potential causes of problems .

❑ Pareto Chart –

Separating the trivial from the important. Often, a majority of problems is caused by a minority of
causes (i.e. the 80/20 rule).

❑ Blueprinting-

Visualization of service delivery, identifying points where failures are most likely to occur
TOOLS TO ANALYZE AND ADDRESS SERVICE QUALITY PROBLEMS :

❑ Total Quality Management (TQM)

❑ ISO 9000
Comprises requirements, definitions, guidelines, and related standards to provide an independent
assessment and certification of a firm’s quality management system

❑ Malcolm Baldrige Model Applied to Services

To promote best practices in quality management, and recognizing, and publicizing quality
achievements among U.S. firms

❑ Six Sigma

• Statistically, only 3.4 defects per million opportunities (1/294,000)

• Has evolved from defect-reduction approach to an overall business-improvement approach

SUMMARY:

❑ Customers evaluate services using five different categories

• Tangibles, reliability, responsiveness, assurance, empathy

❑ There are service quality gaps and solutions presented in the Gaps Model

❑ Key tools for measuring and improving productivity are:

• Fishbone diagram
• Pareto Chart
• Blueprinting
• Total Quality Management (TQM)
• ISO 9000
• Malcolm Baldrige Model Applied to Services
• Six Sigma
QUALITY MANAGEMENT
INTRODUCTION OF ISO
An ISO Management Standard is a set of internationally recognised
guidelines, covering key areas of running and managing a business such as:

• Leadership and commitment

• Managing Business Risks and Opportunities
• Resources such as, People and Infrastructure
• Competence
• Communication
• Operational Planning and Control
• Performance Evaluation
• Improvement
122
WHAT IS ISO CERTIFICATION

• ISO certification is proof from a third party that you comply with an ISO
management standard.
• It can show your key stakeholders that you have a well-run business that
has structure, is stable and ready for growth – this can help with applying
for finance from your bank, impressing potential investors, or eventually
selling.
• To achieve ISO Certification, you have to prove that your business meets
the requirements of the standard.
• Although this sounds intimidating, a lot of the requirements are general
good business practice and we will help you every step of the way.

123
• Once certified, we will help you to continually retain your certification.
• You will be able to contact us for advice whenever you need it and our fees
include on-going consultancy to help keep your systems on track for a
painless re-certification, year after year.

If you answer yes to all or some of the following questions, you should
consider having your business certified:

• Would you like your business to be worth up to 20% more?

• Would you like to be more profitable?
• Are there areas within your business that could be more efficient?
• Would you benefit from reducing costs?
• Are your processes and procedures undocumented?

124
• Could improving customer satisfaction improve your turnover?
• Do you find yourself (or your team) spending time fixing things rather than
planning for a stronger future?
• Do different people do things in their own way?
• Does it take a while for new starters to become productive?
• Would your business benefit from improved staff engagement and
heightened motivation?

125
126
127
Benefits of ISO
• An ISO management standard is a way of running your operations so they
are consistent and effective. It is viewed as business best practice.

The most common benefits include:

• Increased efficiency
• Reduced costs
• Improved customer satisfaction
• More engaged employees
• Reduced risks

128
(REQIREMENTS)

129
What are the ISO 9001 Requirements?
REQUIREMENTS
• As with any standardization or regulatory organization that awards
certifications, you can expect that there are a lot of requirements to comply
with — especially since this is an international standard.

• All the ISO 9001 requirements are set out by ISO in ten clauses.

• Mandatory requirements need to be complied with, while non-

mandatory requirements may be submitted for documentation
purposes. To be certified compliant with ISO 9001:2A015, the following
documents must be submitted.

131
ISO 9001 Mandatory Requirements — Documents and Records

• Monitoring and measuring equipment calibration records

• Records of training, skills, experience and qualifications
• Product/service requirements review records
• Record about design and development outputs review
• Record about design and development inputs
• Records of design and development controls
• Records of design and development outputs
• Design and development changes records
• Characteristics of product to be produced and service to be provided

132
• Records about customer property
• Production/service provision change control records
• Record of conformity of product/service with acceptance criteria
• Record of nonconforming outputs
• Monitoring measurement results
• Internal audit program
• Results of internal audits
• Results of the management review
• Results of corrective actions

133
Non-Mandatory Requirements — But Often Included

• Procedure for determining context of the organization and interested parties

• Procedure for addressing risks and opportunities
• Procedure for competence, training and awareness
• Procedure of equipment maintenance and measuring equipment
• Procedure for document and record control
• Sales procedure
• Procedure for design and development

134
• Procedure for production and service provision
• Warehousing procedure
• Procedure for management of nonconformities and
corrective actions
• Procedure for monitoring customer satisfaction
• Procedure for internal audit
• Procedure for management review

135
IMPLEMENTATION OF ISO
• Familiarize Yourself with ISO 9001
• Plan Everything out for Implementation
• Identify Responsibilities, Policies, and Objectives
• Develop Your Documentation
• Launch Your Quality Management System
• Review Your Performance
• Assess and Register for Certification
• Continual Improvement

136
DOCUMENTATION OF ISO
• QMS documentation hierarchy

137
ISO 22000 :

138
ISO 22000
• ISO 22000 is a Food Safety Management System that can be applied to any
organization in the food chain, farm to fork. Becoming certified to ISO
22000 allows a company to show their customers that they have a food
safety management system in place.

• This provides customer confidence in the product.

• This is becoming more and more important as customers demand safe food
and food processors require that ingredients obtained from their suppliers to
be safe.

139
What does ISO 22000 require?

• ISO 22000 requires that you build a Food Safety Management System. This
means that you will have a documented system in place and fully
implemented throughout your facility that includes:
• Effective Prerequisite Programs in place to ensure a clean sanitary
environment
• A Hazard Analysis and Critical Control Plan developed to identify, prevent
and eliminate food safety hazards,

• Established documented food safety management system processes to

manage food safety throughout your organization - from management and
business planning aspects to day to day communication and operations
affecting food safety.

140
• The ISO 22000 standard contains the specific requirements to be addressed
by the Food Safety Management System. The standard requires food safety
management system processes including:
• Having an overall Food Safety Policy for your organization, developed by
top management.
• Setting objectives that will drive your companies efforts to comply with
this policy.
• Planning and designing a management system and documenting the system.
• Maintaining records of the performance of the system.
• Establishing a group of qualified individuals to make up a Food Safety
Team.
• Defining communication procedures to ensure effective communication
with important contacts outside the company (regulatory, customers,
suppliers and others) and for effective internal communication.

141
• Having an emergency plan.
• Holding management review meetings to evaluate the performance of the
FSMS.
• Providing adequate resources for the effective operation of the FSMS
including appropriately trained and qualified personnel, sufficient
infrastructure and appropriate work environment to ensure food safety.
• Implementing Prerequisite Programs.
• Following HACCP principles.
• Establishing a traceability system for identification of product.
• Establishing a corrective action system and control of nonconforming
product.

142
• Maintaining a documented procedure for handling
withdrawal of product.
• Controlling monitoring and measuring devices.
• Establishing and maintaining and
internal audit program.
• Continually updating and improving the FSMS.

143
144
HACCP DEFINITION
• HACCP-Hazard Analysis and Critical Control Points

• “Is a systematic approach to the identification and assessment of risk and severity, and
control of biological, chemical and physical hazards associated with a particular food,
production process or practice”

145
HISTORY OF HACCP
Year 1959 Pillsbury developed HACCP system to meet requirements of
“NASA” space program. Modes of failures concepts of US army Natick
Lab. was the basis
Year 1969- Codex Alimantarius - Joint WHO/FAO body published
guidelines for HACCP
Year 1985- Sub committee of National advisory Committee(NAS) developed
report based on HACCP-1985
Year 1989- National Advisory Committee on Microbiological Criteria of
Foods (NACMCF) established guidelines for HACCP
Year 1992- NACMCF redrafted the guidelines based on Codex 146
7 PRINCIPLES OF HACCP

1. Conduct a hazard identification & risk assessment

2. Determine the Critical Control Points (CCPs)

3. Establish critical limits
4. Establish a monitoring system

5. Establish corrective actions

6. Establish verification procedures
7. Establish documentation
147
 PRINCIPLE1: HAZARD IDENTIFICATION & RISK ASSESSMENT

Hazard Identification/Analysis:
The process of collecting and interpreting information on hazards and conditions leading to their presence to
decide which are significant for food safety
RISK ASSESSMENT

Probability / Likely hood

High (3) Medium (2) Low (1)

High (3) GMP

Consequence
Severity or

Medium (2) GMP GMP

Low (1) GMP GMP GMP

 PRINCIPLE 2. Determine the Critical Control Points (CCPs)

Control Point; A step where control can be applied to prevent, eliminate or reduce a food safety
hazard to acceptable levels.

Control Measure; Any activity that can be used to prevent , eliminate or reduce to an acceptable level a food safety hazard

CRITICAL CONTROL POINT

step at which control can be applied and is essential to prevent or eliminate a food safety hazard or reduce it
to an acceptable level
 Determine the CCPs :
Modify Step
Is control at this
Q1. Are Control Measures Process or step
in place for the hazard ? Product required for
Yes No
safety?
Yes No

Q2. Does the Process Step

eliminate or reduce the Hazard Not a CCP
to an acceptable level ?
Yes No CCP

Q3. Could Contamination with

No Not a CCP
the Hazard occur at ,or increase Stop
to, unacceptable levels ?
Yes Critical
Q4. Will a Subsequent Process Control
Step eliminate or reduce the Point (CCP)
Hazard to an acceptable level ?
Yes No CCP
Not a CCP
 PRINCIPLE 3; ESTABLISH CRITICAL LIMIT(S) :

• Establish target levels and tolerance which must be

met to ensure each CCP is under control
• Specify the criteria which MUST be met to ensure that
each hazard (which makes a Process Step a CCP) is in
“control”.
• E.g. Heating Temperature and time
• Double seaming effectiveness
 PRINCIPLE 4 : ESTABLISH A MONITORING SYSTEM

• Establish a monitoring system to ensure control of the CCP by scheduled testing or

observations.
• Establish target levels and tolerance which must be met to ensure each CCP is under
control.
• Monitoring Procedures:
• What?
• When?
• Where?
• How?
• Who?
 PRINCIPLE 5: ESTABLISH CORRECTIVE ACTION

Establish the corrective action to be taken when monitoring indicates that a

particular CCP is not under control.

Establish corrective action, when a CCP is moving out of control.

Adjust the process to bring back under control
Action plan for non conforming material
 PRINCIPLE 6; ESTABLISH VERIFICATION PROCEDURES
Establish procedures for verification to confirm that the HACCP system is working effectively

Establish Verification Procedures, consisting of:

- Verification of Monitoring
- Verification of Corrective Action
Make practical plans for checking whether the
HACCP Plan is working or not.
 PRINCIPLE 7: ESTABLISH DOCUMENTATION

Establish documentation concerning all procedures

and records appropriate to these principles and
their application
 Quality Terminologies
Every quality professional needs a handy reference of
quality terms, acronyms and key people in the history of
quality. This glossary—which includes many updated and
revised terms, along with nearly 50 new entries—derives
from a variety of sources, including books, periodicals,
websites and quality experts. The new entries are set off
with the word "NEW!" in front of the new term.

156
01
Academic Quality
Improvement Project (AQIP)
A forum for higher education institutions to review
one another’s action projects.

157
02

Acceptance number

The maximum number of defects or

defectives allowable in a sampling lot
for the lot to be acceptable.

158
03
Acceptance quality
limit (AQL)
In a continuing series of lots, a
quality level that, for the purpose of
sampling inspection, is the limit of a
satisfactory process average.

159
04
Acceptance sampling
Inspection of a sample from a lot to decide whether to accept
that lot. There are two types: attributes sampling and variables
sampling. In attributes sampling, the presence or absence of a
characteristic is noted in each of the units inspected. In variables
sampling, the numerical magnitude of a characteristic is
measured and recorded for each inspected unit; this involves
reference to a continuous scale of some kind. 160
05
Acceptance sampling plan

A specific plan that indicates the sampling sizes and

associated acceptance or nonacceptance criteria to be used.
In attributes sampling, for example, there are single, double,
multiple, sequential, chain and skip-lot sampling plans. In
variables sampling, there are single, double and sequential
sampling plans..
161
06
Accreditation body

An organization with authority to

accredit other organizations to perform
services such as quality system
certification.

162
07
Accuracy

The closeness of agreement between

an observed value and an accepted
reference value.

163
08
Activity-based costing

An accounting system that assigns costs to

a product based on the amount of
resources used to design, order or make it.

164
09
Advanced Product Quality
Planning (APQP)

A high-level automotive process for

product realization, from design
through production part approval.

165
10
Cost of poor quality (COPQ)

The costs associated with providing poor quality products or services. There
are four categories: internal failure costs (costs associated with defects
found before the customer receives the product or service), external failure
costs (costs associated with defects found after the customer receives the
product or service), appraisal costs (costs incurred to determine the degree
of conformance to quality requirements) and prevention costs (costs
incurred to keep failure and appraisal costs to a minimum).

166
11
Cost of quality (COQ)

Another term for COPQ. It is considered by some to be

synonymous with COPQ but is considered by others to be
unique. While the two concepts emphasize the same
ideas, some disagree as to which concept came first and
which categories are included in each.
167
12
Equipment availability

The percentage of time during which a process (or equipment) is

available to run. This can sometimes be called uptime. To calculate
operational availability, divide the machine’s operating time during
the process by the net available time (production time / potential
production time) x 100.

168
13
Error proofing

Improving designs to prevent mistakes from being

made. Contrasted with mistake proofing, which is
improving processes to prevent mistakes from being
made or passed downstream. Some consider the terms
to be synonymous, however, and applicable to both
products and processes. 169
14
Gap analysis

The comparison of a current

condition to the desired state.

170
15
Green Belt (GB)

An employee who has been trained in the Six Sigma

improvement method and can lead a process
improvement or quality improvement team as part of his
or her full-time job.

171
16
Hazard analysis and critical
control point (HACCP)

A quality management system for effectively and efficiently

ensuring farm-to-table food safety in the United States. HACCP
regulations for various sectors are established by the
Department of Agriculture and the Food and Drug
Administration.

172
17
Heijunka

A method of leveling production, usually at the final assembly

line, that makes just-in-time production possible. It involves
averaging the volume and sequence of different model types on a
mixed model production line. Using this method avoids excessive
batching of different types of product and volume fluctuations in
the same product. Also see “production smoothing.”
173
18
House of quality

A product planning matrix, somewhat resembling a

house, that is developed during quality function
deployment and shows the relationship of customer
requirements to the means of achieving these
requirements.
174
19
Informative inspection

A form of inspection for determining

nonconforming product. Also see
“judgment inspection.”

175
20
Instant pudding

A term used to illustrate an obstacle to

achieving quality, or the supposition that quality
and productivity improvement are achieved
quickly through an affirmation of faith rather
than through sufficient effort and education.
176
21
Hazard analysis and critical
control point (HACCP)

A quality management system for effectively and

efficiently ensuring farm-to-table food safety in the
United States. HACCP regulations for various sectors
are established by the Department of Agriculture and
the Food and Drug Administration.
177
22
Kanban

A method for providing material/product to a succeeding operation by

signaling the preceding operation when more material/product is needed.
This “pull” type of process control employs a kanban, a card or signboard,
attached to a lot of material/product in a production line signifying the
delivery of a given quantity. When all of the material/product has been
processed, the card/sign is returned to its source, where it becomes an order
to replenish.

178
23
Jidohka

Stopping a line automatically when a defective part is detected.

Any necessary improvements can then be made by directing
attention to the stopped equipment and the worker who stopped
the operation. The jidohka system puts faith in the worker as a
thinker and allows all workers the right to stop the line on which
they are working.

179
24
Key process

A major system level process that supports the

mission and satisfies major consumer requirements.

180
25
Lead time

The total time a customer must wait to receive a

product after placing an order.

181
26
One-piece flow

The opposite of batch and queue; instead of

building many products and then holding them
in line for the next step in the process, products
go through each step in the process one at a
time, without interruption
182
27
Operating expenses

The money required for a system to convert inventory

into throughput.

183
28
Prevention cost

The cost incurred by actions taken to prevent a

nonconformance from occurring; one element of
cost of quality. See “cost of quality.”

184
 29
Process owner
The person who has responsibility and authority for ensuring
that a process meets specified requirements and achieves
objectives.

185
30
Quality management system (QMS)

A formal system that documents the structure, processes,

roles, responsibilities and procedures required to achieve
effective quality management.

186
187