This document provides an overview of quality management. It discusses traditional business strategies and how most companies now focus on quality. It defines inspection and quality, and describes the nature, objectives, and scope of inspections. It also covers statistical quality control, acceptance sampling techniques, total quality management, and modern quality management approaches including Deming's work. The key aspects covered include the importance of quality, different approaches to quality control, defining inspection and quality, the objectives and scope of inspections, statistical process control using charts, acceptance sampling plans, total quality management principles, and Deming's contributions to modern quality management.

1. QUALITY
MANAGEMENT
P r e s e n t e d b y :
N a r a y a n S h a r m a
I T M E E C ( D o m . ) – M B A ( B a t c h - 8 )

2. I N T R O D U C T I O N
Traditional strategies of business organizations have tended to emphasize cost minimization or product
differentiation. But, most companies today focus on superior quality and/or time which form the core of their
business strategy. Attaining near perfect product quality is seen as a principle means of capturing market
share in global competition.
Approaches To The Quality Control
Acceptance
sampling
Process
control
Continuous
improvement
Inspection before and
after production
Corrective actions
during production
Quality built
in to the process
Least progressive firms The most progressive firms

3. NATURE OF INSPECTION
Definition Of Inspection
Inspection has been defined as a function whose purpose are to interpret specifications, verify
conformance to these specifications and communicate the information obtained to those responsible
for making necessary correction in the manufacturing process.
Definition Of Quality
Quality may be defined as the sum total of features of a product, which influence its ability to satisfy a
given demand.

4. NATURE OF INSPECTION
Dimensions Of Product Quality:
 Performance
 Features
 Reliability
 Serviceability
 Appearance
 Customer Service
 Safety

5. NATURE OF INSPECTION
I N S P E C T I O N
 Contributes to the quality of goods produced.
 Activities that must be performed to fill quality objectives.
 Aims at investigating the root cause for defects identified by inspection.
 Comparison with established standards
 Postmortem operation after the product is manufactured.
 Inspection is one phase of QC
Q U A L I T Y C O N T R O L

6. NATURE OF INSPECTION
O B J E C T I V E O F I N S P E C T I O N S
 Prevention of defects
 Detect defects during process
 Detects trends that might lead to the defects
 Remove defective parts from the production to prevent further handling and processing cost
 Remove defective parts to prevent [poor performance of the finished products
 Inform all levels of management on the performance of manufacturing departments
 Provide records for evaluation of individual machines or worker performance

7. NATURE OF INSPECTION
S C O P E O F I N S P E C T I O N S
 Receiving inspection
• Pre-production
• First-piece inspection
 Production Inspection
• Patrol/Floor Inspection
• Centralize inspection
 Product tests

8. NATURE OF INSPECTION
I S S S U E S I N I N S P E C T I O N
 How much quantity to be inspected and how often?
 At what points in the process, the inspection should be carried out
 Whether to inspect in centralized inspection area or on-site location
 Whether to inspect variables or attributes

9. QUALITY CONTROL
B E N E F I T O F Q U A L I T Y C O N T R O L
 Minimum scrap or rework
 Reduced cost of labor and material
 Uniform quality and reliability of product
 Reduced variability resulting in-higher quality
 Reduced inspection and inspection costs
 Reduced customer complaints
 Increased quality consciousness among employees
 Higher operating efficiency
 Better Utilization of resources
 Better customer satisfaction and employee satisfaction

10. QUALITY CONTROL
Definition Of Quality Assurance
Quality Assurance has been defined as “all those planned or systematic actions necessary to provide
adequate confidence that a product or service will satisfy given requirement for quality”.
Organization For Quality Control
Quality control is a staff function concern with the prevention of defects in manufacturing so that items
may be made right at the first time and not be rejected later.

11. QUALITY CONTROL
E N S U R I N G Q U A L I T Y
 Control of engineering quality
 Control of purchase material quality
 Control of manufacturing quality
 Action supporting the product after delivery

12. STATISTICAL QUALITY CONTROL (SQC)
Definition Of SQC
Statistical quality control is the application of statistical techniques to accept or reject products already
produced, or to control the process and, therefore, product quality while the part is been made.
SQC For Process Control
SQC is used for controlling quality during production in mass production industries which produce
standard products. SQC for process control is based on probability theory, that when several identical
parts are manufactured, some are a little large and some a little small, but most will be approximately
the same. The middle or average will be the most frequent, with small and largest sizes as extreme
from the average.

13. STATISTICAL QUALITY CONTROL (SQC)
0
5
10
15
20
25
30
0.995 1.000 1.005
No.OfCases
Size in Inches
Bell shaped curve

14. STATISTICAL QUALITY CONTROL (SQC)
Lower Control Limit
Upper Control Limit
Central
Line
Time
QualityVariables
Average Quality

15. STATISTICAL QUALITY CONTROL (SQC)
Acceptance Sampling
Acceptance Sampling is a statistical technique used to take a decision regarding acceptance or
rejection of a lot without having to examine the entire lot. In this method samples are taken out and all
carefully inspected to detect defects. On the basis of number of defects found, the lot is accepted or
rejected, if defects are few lot is accepted. It is rejected when defects are more.

16. STATISTICAL QUALITY CONTROL (SQC)
A D V A N T A G E S O F S Q C
 Prevent defects
 Avoidance of the risk of accepting bad lot
 Emphasizing on inspection of only samples
 Ensure the maintenance of high standards of quality

17. STATISTICAL QUALITY CONTROL (SQC)
Sampling
It’s a process of selecting and measuring (or inspecting) representative units of output termed sample
units. A set of sample units is termed as sample. The sample units are drawn from the lot at random.
Random sample is one which each unit in a lot has an equal chance of being included in the sample
and the sample is likely to be representative of the lot.
Central Limit Theorem
This theorem is stated as “Sampling distributions can be assumed to be normally distributed even
though the population distribution are not normal”.

18. TYPES OF CONTROL CHARTS
C O N T R O L C H A R T S F O R V A R I A B L E S
C O N T R O L C H A R T S F O R A T T R I B U T E S
 x̅ - chart
 R Chart
 np chart
 p chart
 c chart
 u chart

19. ACCEPTANCE SAMPLING TECHNIQUES
When 100% inspection is not practical ( i.e. either too costly and time consuming or of destructive nature)
sampling inspection is the best way of estimating the quality of incoming or outgoing lots.
Acceptance Sampling By Attributes
Acceptance Sampling by attributes involves extracting a random sample from the lot to determine
whether to accept or reject the entire lot based on the quality of the sample, or whether to subject the
lot for 100% inspection. The sampling may be single sampling, double sampling or sequential sampling
depending on the sampling procedure and the number of samples drawn from a single lot.
Acceptance sampling plans have two important concepts. They are:
• Average Outgoing Quality Curves
• Operating Characteristic Curves

20. ACCEPTANCE SAMPLING TECHNIQUES
AverageOutgoingQuality
(Percentdefective)
Limit of average
Outgoing quality
Actual percent defective being produced
An Average Outgoing Quality Curve

21. ACCEPTANCE SAMPLING TECHNIQUES
0 1 2 3 4 5 6 7 8 9 10
0.10
0.95
1.00Probabilityofaccepting
Thelot(pa)
Actual percent defective (p) in the lot
Consumer’s risk (b) = 10%
Producer’s risk (a) = 5%
LTPDAQL
n = Sample size
c = acceptance number
Operating Characteristic Curve

22. ACCEPTANCE SAMPLING TECHNIQUES
T Y P E S O F A C C E P T A N C E S A M P L I N G P L A N S
 Single sampling
 Double sampling
 Sequential Sampling

23. TOTAL QUALITY MANAGEMENT
Total Quality Management has been defined as a philosophy that involves everyone in an organization in a
continual effort to improve quality and achieve customer satisfaction.
What Is Quality?
• Conformance to specifications
• Conformance to requirements
• What the customer thinks it is
• Measure of the conformance of the product/service to the customer’s need
• Combination of aesthetics, features and design
• Value for money
• The ability of a product to meet customer’s needs
• Meeting or exceeding customer requirements now and in the future
• Fitness for use of a product/service by the intended customer
• A customer’s perception of the degree to which the product meets his/her expectations
• Totality of features and characteristics of a product/service that bears on its ability to satisfy a stated
or implied need

24. TOTAL QUALITY MANAGEMENT
N E W T H I N K I N G A B O U T Q U A L I T Y
Old Quality is “small q” New Quality is “Big Q”
 About products
 Technical
 For inspectors
 Led by experts
 High grade
 About control
 About organizations
 Strategic
 For everyone
 Led by management
 The appropriate grade
 About improvement

25. TOTAL QUALITY MANAGEMENT
E I G H T D I M E N S I O N S O F P R O D U C T Q U A L I T Y
• Performance
• Features
• Reliability
• serviceability
 Aesthetics
 Durability
 Customer service
 Safety

26. TOTAL QUALITY MANAGEMENT
T E N D I M E N S I O N S O F S E R V I C E Q U A L I T Y
 Reliability
 Responsiveness
 Competence
 Access
 Courtesy
 Communication
 Credibility
 Understanding
 Security/Safety
 Tangibles

27. TOTAL QUALITY MANAGEMENT
B E N E F I T S O F Q U A L I T Y
 Gives positive company image
 Improves competitive safety
 Increases market share and net profits
 Reduces costs
 Reduces product liability problems
 Improve employee morale
 Improves productivity

28. TOTAL QUALITY MANAGEMENT
C U S T O M E R - D R I V E N D E F I N I T I O N S O F Q U A L I T Y
 Conformance to specifications
 Value for money
 Fitness for use
 Support provided by seller (customer services)
 Psychological impression (image, aesthetics)

29. TOTAL QUALITY MANAGEMENT
Definition Of Perceived Quality
Perceived Quality has been defined as “An assessment of quality based on the reputation firm.”
Customers base their assessment of quality on such factors as advertisements, media reports,
reputations and past experience to indicate perceived quality.
Organization For Customer-Driven Quality
Quality is meeting or exceeding customer expectations. The term “customer” includes both the “internal
customer” and the “external customer” in the “customer chain”.

30. TOTAL QUALITY MANAGEMENT
T H R E E L E V E L S O F Q U A L I T Y
 Organization level – Meeting external customer requirements
 Process level – Meeting the needs of internal customers
 Performer level – Meeting the requirements of accuracy, completeness innovation and cost

31. TOTAL QUALITY MANAGEMENT
D E T E R M I N A N T S O F Q U A L I T Y
 Quality of design
 Quality capability of process
 Quality of conformance
 Quality of customer service
 Organization quality culture

32. WHAT IS QUALITY MANAGEMENT
 Inspection to ensure quality (in early 1900s)
 Statistical quality control (in the 1940s)
 Total quality management: Including the entire organization (1960s onwards)

33. WHAT IS QUALITY MANAGEMENT
 Setting quality standards
 Appraisal of conformance
 Taking corrective actions to reduce deviation
 Planning for quality improvement
W H A T I S Q U A L I T Y C O N T R O L

34. MODERN QUALITY MANAGEMENT
 Higher quality means lower cost
 Quality means continuous improvement
 14 points for quality management
 Seven deadly diseases and sins
 Deming’s wheel
 Deming’s triangle
 Deming’s prize
W . E D W A R D S D E M I N G

35. MODERN QUALITY MANAGEMENT
1. Create constancy for the purpose for continual improvement of the product
2. Adopt the new policy for the economic stability
3. Cease dependency on inspection to achieve quality
4. End the practice of awarding the business on price tag alone
5. Improve constantly and forever the system of production and service
6. Institute training on the job
7. Adopt and institute the modern method of supervision and leadership
8. Drive out fear (Fear of failure, fear of change)
9. Breakdown barriers between department and individuals
10. Eliminate the use of slogans, posters and exhortations
11. Eliminate work standards and numerical quotas
12. Remove barriers that rob the hourly worker of the right to pride in workmanship
13. Institute the vigorous program of educating and retraining
14. Define top managements permanent commitment to ever improving quality and productivity
D E M I N G ’ S 1 4 P O I N T S F O R Q U A L I T Y M A N A G E M E N T

36. MODERN QUALITY MANAGEMENT
1. Lack of constancy of purpose (short term quality program)
2. Emphasis on short term profit
3. Over reliance on performance appraisals
4. Mobility of management (job hopping)
5. Over emphasis on visual figures
6. Excessive medical costs for employees healthcare
7. Excessive cost of warranty and legal costs
D E M I N G ’ S 7 D E A D L Y D E S E A S E S A N D S I N S

37. MODERN QUALITY MANAGEMENT
D E M I N G ’ S W H E E L / C Y C L E / P - D - C - A C Y C L E

38. MODERN QUALITY MANAGEMENT
D E M I N G ’ S T R I A N G L E
Axiom1
Commitment
(Obsession with quality)
Axiom 3
Involvement
Axiom 2
(Scientific knowledge and method)

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