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Course: Quality Management (5575)

ASSIGNMENT No. 1

Q. 1 Explain tools and techniques for quality management. What toolscould be used for planning, data collection, and analysis, and forcontrinuous improvement?

A!- Many of the tools and techniques in current use have their roots in post-

World War II Japan. Dr. W. Edwards Deming used statistical methods to improve

quality with a strong focus on the customer or end user, while in the process

maing organi!ations more productive and profita"le. #lthough this user-needs

focus is now widely accepted, it was an unconventional perspective at the time.

Deming$s approach wasplan, do, check, and act% later he e&panded these ideas

to'

(. Design the product.

). Mae it% test it in the production line and the la"oratory.

*. +ut it on the maret.

. est it in service% find out what the user thins of it, and why the nonuser

has not "ought it.

Joseph Juran also did much to promote quality improvement, especially a

product$s fitness of use. Fitness of use is defined as "oth ( freedom from

defects and deficiencies, and ) product features that meet the user$s needs.

hese two ideas continue to evolve in more recent quality management ideas

and practices. /or e&ample, the 0i& 0igma principle, which attempts to limit

defective units per "illion to two, is a disciplined e&ample of the first definition of

fitness of use a"ove. Individuals woring with human factors to understand howend users interact with various graphical user interfaces would "e an e&ample of

the second definition.

ools and techniques for quality management are numerous. # Pareto diagram

is a histogram with columns or "ars ordered from most common to least. /igure

1

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1-2 from 0chwal"e 3see "elow shows an e&ample of a +areto diagram. It is a

graphical way of summari!ing where most pro"lems occur with a product, or

what most users would lie to see included in a product. It is an important

graphical display tool, as often a great ma4ority of pro"lems or needs fall into the

same category. 5ften, the num"er of individuals providing input is somewhat

limited, so that issues can "e classified and enumerated from the entire

population.

Statistical samplingis often necessary to test the quality of products produced,

as looing at each individual product would "e very time consuming and cost

prohi"itive. he sample must "e random, and large enough to represent the

entire population of products with some degree of certainty.

he term quality means different things to different people. /or e&ample, a

quality automo"ile may "e one, which has no defects and wors e&actly as we

e&pect. 0uch a definition would fit with an oft-repeated definition "y J.M Juran

67uality is fitness for use.6 8owever, there are other definitions widely discussed.

7uality as 6conformance to specifications6 is a position that people in the

manufacturing industry often promote. Why9 +resuma"ly "ecause manufacturing

can do nothing to change the design% hence this definition. 5thers promote wider

views which include the e&pectations that the product or service "eing delivered

( meets customer standards, ) meets and fulfills customer needs, * meets

customer e&pectations, and will meet unanticipated future needs and

aspirations. 0till others simply ignore definitions and say 6I$ll now quality when I

see it.6 It seems that we all $now$ or $feel$ somehow what quality is. # product or

service that e&ceeds our preconceived idea a"out the quality of that product or

service is liely to "e 4udged as having 6high quality.6 It is equally clear that the"est of a group of "ad products is not liely to "e perceived as a quality product.

:ac of management commitment. When management tals 7M, "ut its actions

fails to support the effort, it will ultimately fail to meet e&pectations. he result is

cynicism and mistrust and difficulty launching another attempt. /or

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implementation to succeed, management must clearly and frequently

communicate the reason for adopting 7M, as if it is another fad.

; efore implementing 7M, management should strive for an

organi!ation wide commitment, clearly communicate the organi!ation=s vision,

mission, and goals, and foster open communication a"out the organi!ation=s

changed focus.

; ?se of data. 7M relies on data"ased decision maing. o succeed in "uilding

and sustaining a 7M environment, data must "e accurate, timely and relia"le.

he measurement process used must "e valid and consistent, and data access

should "e efficient. Decision maers must "e trained in data analysis and

interpretation.5ther pro"lems, many of which fall under the four previous categories, include,

"ut are not limited to'

; :ac of strategic direction

; :ac of shared vision, mission, or guiding principles

; :ac of cooperation and teamwor among different worgroups

; /ocus on short-term profits rather than on long-term goals

; /ailure to understand what teamwor entails

; /ailure to focus on customers= need and e&pectations

; :ac of mutual trust and respect among level of employees

; insufficient resources or lac of sustained commitment of those resources

; :ac of continual and effective training and education

3

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; Management=s failure to recogni!e and @ or reward achievements

7M, as a term, is not used as widely in the ?nited 0tates as it once was. Most

of the concepts, principles, and methodology have "een su"sumed under the

term quality management. 7uality is an important factor in today=s increasingly

glo"ali!e and li"erali!ed marets, and it is considered that the application of

quality management techniques will mae a positive contri"ution to the

competitive performance of countries, economic sectors and individual

organi!ations. 0ince competitiveness contri"utes to sustaina"le development,

the widespread diffusion and implementation of quality management seems

desira"le from a national point of view. Aecently in :atin #merica there has "een

a growing tendency for governments to esta"lish programmes that promote and

support the dissemination of quality management techniques. In this respect,

quality issues will play an increasingly important role in the economic and social

development o"4ectives of the countries in the region. Bevertheless, the

implementation of total quality management 37M innovations has not proved to

"e either easy or rapid' for e&ample, in :atin #merica the I05 C standards for

quality systems have not spread as quicly as in most other regions of the world.

he author identifies maret considerations, limited access to resources,

traditional management practices and macroeconomic conditions as o"staclesthat have limited the level of quality awareness in the region. hese o"stacles

may "e associated with maret flaws that occur within companies, "etween

companies and in factor marets. arious governments have therefore chosen to

promote quality management techniques in order to mae the necessary

ad4ustments to these flaws. he article concludes with an overview of the

activities carried out in some selected :atin #merican countries in order to

enhance the diffusion of I05 C quality management systems.

he !even "asic #ools of Quality is a designation given to a fi&ed set of

graphical techniques identified as "eing most helpful in trou"leshooting issues

related to quality. hey are called basic"ecause they are suita"le for people with

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little formal training in statistics and "ecause they can "e used to solve the vast

ma4ority of quality-related issues.

he 0even >asic ools of 7uality includes '

Ishiawa 3fish"one diagram,

enei. #t that

time, companies that had set a"out training their worforces in statistical quality

control found that the comple&ity of the su"4ect intimidated the vast ma4ority of

their worers and scaled "ac training to focus primarily on simpler methods

which suffice for most quality-related issues. he 0even >asic ools stand incontrast to more advanced statistical methods such as survey sampling,

acceptance sampling, statistical hypothesis testing, design of e&periments,

multivariate analysis, and various methods developed in the field of operations

research.

$escription of the tools

he seven tools are'

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+areto chart

0catter diagram

0tratification3alternately, flow chartor run chart

%shi&a'a (fishbone) diagram

Ishiawa diagram 3called sometimes fish"one diagram or cause-and-effect

diagram was introduced "y Gaoru Ishiawa 3(CH1 and show the causes of a

specific event.

usiness Improvement #rchitect$s 0trategic 7uality

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+lanning +rocess are'

%dentifying the -rganiational Quality %nitiatives

We$ll wor with your organi!ation$s 7uality Manager and team to identify andassess all of the various quality initiatives that they have used in the past and the

present.

/nderstanding the 0oice of the *ustomer

o ensure that the new 7uality 0trategy has a clear customer focus, we wor

with to identify current and future staeholder@customer requirements through

research and review of your organi!ation$s product and services deliveryprocess.

%dentifying Employee %nvolvement

We ensure employee input is considered in the strategic planning process to

enrich the quality of the final plan and gain their commitment, "uy-in and support

for the implementation phase.

*onducting "enchmar&ing

We "elieve that it is "eneficial to conduct "enchmaring as part of the planning

process to learn what others are doing 3including competitors and to learn from

them. 0uch effort is worthwhile as it provides information a"out "est practices

and generates useful ideas for improving internal quality processes.

$eveloping the 0ision and !trategic $irection

We facilitate the creation of your 0trategic 7uality ision and 7uality 0trategies.

his includes' the structure and approach to quality throughout the organi!ation,

what tools and processes to use to esta"lish quality and how quality will "e

measured. It will also include the outcomes of quality on your organi!ation$s

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products, services and what customers will "e saying a"out them.

$eveloping a !tatement of Quality and Quality !tandards

We$ll wor with you to develop' # 0tatement of 7uality that is highly relevant to descri"e what quality will

mean for in the organi!ation. It will clearly descri"e the overall goals,

mandates and o"4ectives for the quality initiative.

7uality 0tandards to guide employees in achieving the 0tatement of

7uality.

%dentifying the Quality !trategies

We facilitate a process to translate the quality vision, quality statement and

quality standards into ey strategies. his process includes a ris assessment.

$eveloping -perational Effectiveness

We facilitate an 5perational Effectiveness +lan to identify the requirements for

each 7uality 0trategy with detailed #ction +lans.

$eveloping !trategy easurements

We ensure that you have the right measures are in place to monitor and manage

quality on a forward going "asis.

Q. 2 (a) What are the characteristics of Quality 3unction $eployment as a

quality system?

Quality function deployment (Q3$)is a method to transform user demands

into design quality, to deploy the functions forming quality, and to deploy

methods for achieving the design quality into su"systems and component parts,

and ultimately to specific elements of the manufacturing process., as descri"ed

"y Dr. Lo4i #ao, who originally developed 7/D in Japan in (CHH, when the

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author com"ined his wor in quality assurance and quality control points with

function deployment used in value engineering. 7/D is designed to help

planners focus on characteristics of a new or e&isting product or service from the

viewpoints of maret segments, company, or technology-development needs.

he technique yields charts and matrices. 7/D helps transform customer needs

3the voice of the customer 5

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"eyond quality to cost, technology, relia"ility, function, parts, technology,

manufacturing, and service deployments.

In addition, the same technique can e&tend the method into the constituent

product su"systems, configuration items, assem"lies, and parts. /rom these

detail level components, fa"rication and assem"ly process 7/D charts can "e

developed to support statistical process controltechniques.

5ugh concept selection

+ugh

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called 6catch"all6. ?se of these 8oshin techniques "y ?.0. companies such as

8ewlett +acard have "een successful in focusing and aligning company

resources to follow stated strategic goals throughout an organi!ational hierarchy.

0ince the early introduction of 7/D, the technique has "een developed to

shorten the time span and reduce the required group efforts.

(b) What must an organiation do to maintain a customer focus and

explain the benefits of maintaining customer focus?

A!

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usiness #dministration. /or

e&ample, a diet company may let a customer visuali!e herself fitting into her new

"athing suit when writing a direct mail sales letter.

5ricing

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A!-he term quality management has a specific meaning within many

"usiness sectors. his specific definition, which does not aim to assure $good

quality$ "y the more general definition, "ut rather to ensure that an organi!ation

or product is consistent, can "e considered to have four main components'

quality planning, quality control, quality assurance and quality improvement.

7uality management is focused not only on product@service quality, "ut also the

means to achieve it. 7uality management therefore uses quality assurance and

control of processes as well as products to achieve more consistent quality.

Quality management evolution

7uality management is a recent phenomenon. #dvanced civili!ations that

supported the arts and crafts allowed clients to choose goods meeting higher

quality standards than normal goods. In societies where arts and crafts are the

responsi"ility of a master craftsman or artist, they would lead their studio and

train and supervise others. he importance of craftsmen diminished as mass

production and repetitive wor practices were instituted. he aim was to produce

large num"ers of the same goods. he first proponent in the ?0 for this approach

was Eli Whitneywho proposed 3interchangea"le parts manufacture for musets,

hence producing the identical components and creating a muset assem"ly line.

he ne&t step forward was promoted "y several people including /rederic

Winslow aylor a mechanical engineer who sought to improve industrial

efficiency. 8e is sometimes called 6the father of scientific management.6 8e was

one of the intellectual leaders of the Efficiency Movement and part of his

approach laid a further foundation for quality management, including aspects lie

standardi!ation and adopting improved practices. 8enry /ordwas also important

in "ringing process and quality management practices into operation in hisassem"ly lines. In Oermany, Garl /riedrich >en!, often called the inventor of the

motor car, was pursuing similar assem"ly and production practices, although real

mass production was properly initiated in olswagen after World War II. /rom

this period onwards, Borth #merican companies focused predominantly upon

production against lower cost with increased efficiency.

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Walter #. 0hewhart made a ma4or step in the evolution towards quality

management "y creating a method for quality control for production, using

statistical methods, first proposed in (C). his "ecame the foundation for his

ongoing wor on statistical quality control. W. Edwards Deming later applied

statistical process control methods in the ?nited 0tates during World War II,

there"y successfully improving quality in the manufacture of munitions and other

strategically important products. 7uality leadership from a national perspective

has changed over the past five to si& decades. #fter the second world war, Japan

decided to mae quality improvement a national imperative as part of re"uilding

their economy, and sought the help of 0hewhart, Deming and Juran, amongst

others. W. Edwards Demingchampioned 0hewhart$s ideas in Japan from (CK

onwards. 8e is pro"a"ly "est nown for his management philosophy esta"lishing

quality, productivity, and competitive position. 8e has formulated ( points of

attention for managers, which are a high level a"straction of many of his deep

insights. hey should "e interpreted "y learning and understanding the deeper

insights. hese ( pointsinclude ey concepts such as'

>rea down "arriers "etween departments

Management should learn their responsi"ilities, and tae on leadership

0upervision should "e to help people and machines and gadgets to do a

"etter 4o"

Improve constantly and forever the system of production and service

Institute a vigorous program of education and self-improvement

In the (CKs and (CHs, Japanese goods were synonymous with cheapness and

low quality, "ut over time their quality initiatives "egan to "e successful, with

Japan achieving very high levels of quality in products from the (C2s onward./or e&ample, Japanese cars regularly top the J.D. +owercustomer satisfaction

ratings. In the (C1s Deming was ased "y /ord Motor

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oyota +roduction 0ystem. Many of the methods not only provide techniques "ut

also have associated quality culture 3i.e. people factors. hese methods are now

adopted "y the same western countries that decades earlier derided Japanese

methods.

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*ustomer focus

0ince the organi!ations depend on their customers, therefore they should

understand current and future customer needs, should meet customer

requirements and try to e&ceed the e&pectations of customers. #n organi!ation

attains customer focus when all people in the organi!ation now "oth the internal

and e&ternal customers and also what customer requirements must "e met to

ensure that "oth the internal and e&ternal customers are satisfied.

:eadership

:eaders of an organi!ation esta"lish unity of purpose and direction of it. hey

should go for creation and maintenance of such an internal environment, in which

people can "ecome fully involved in achieving the organi!ation$s quality

o"4ective.

%nvolvement of people

+eople at all levels of an organi!ation are the essence of it. heir complete

involvement ena"les their a"ilities to "e used for the "enefit of the organi!ation.

5rocess approach

he desired result can "e achieved when activities and related resources are

managed in an organi!ation as process.this may also affect the

!ystem approach to management

#n organi!ation$s effectiveness and efficiency in achieving its quality o"4ectives

are contri"uted "y identifying, understanding and managing all interrelated

processes as a system.

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*ontinual improvement

5ne of the permanent quality o"4ectives of an organi!ation should "e the

continual improvement of its overall performance.

3actual approach to decision ma&ing

Effective decisions are always "ased on the data analysis and information.

utually beneficial supplier relationships

0ince an organi!ation and its suppliers are interdependent, therefore a mutually

"eneficial relationship "etween them increases the a"ility of "oth to add value.

hese eight principles form the "asis for the quality management system

standard I05 C(')1.

Q. ; Why %!- certification is important for both service and manufacturing

organiations? What possible problems an organiation can come

across in 5a&istan 'hile getting quality standard certification, discuss

in detail.

While I05 3International 5rgani!ation for 0tandardi!ation certification is certainly

not the only thing that should "e e&amined when you are evaluating potential

corporate partnerships, it is an indicator that a company has invested significant

time and effort to implement an o"4ective quality assurance program. o ensure

that an I05 system is "eing effectively implemented, companies that see

certification must commit themselves to monitor, control and attempt to improve

quality. #udits must "e implemented to evaluate the effectiveness of the effort,

and identify any shortcomings that need corrective action. Lou should "e aware

that certification is not necessarily companywide% different practice areas may

need to have individual certification. 0o simply "ecause a company states that

they are I05 C(')1 certified doesn=t necessarily mean that they are I05

C(')1 certified in the area that provides the services you see.

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I05 enefits of I05 C

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I05 ( is primarily concerned with 6environmental management. his means

what the organi!ation does to minimi!e harmful effects on the environment

caused "y its activities and continually improving its environmental performance.

*an any vendor be %!-certified?

Les. here are appro&imately )K, companies worldwide registered to I05

standards. #ny company willing to mae the effort can "e certified.

Why should % require vendors to be %!-certified?

I05 is direct evidence of a company$s financial and ethical commitment to

provide high quality, safe products. I05 certified companies maintain comprehensive internal audit programs

that demonstrate to customers the effectiveness of their quality and

environmental efforts.

I05 certified companies utili!e systems that have "een accepted for use

"y over 1 countries as effective means to achieve product quality and

environmental stewardship.

I05 certified companies document, review, and approve product designs

that meet applica"le safety, regulatory, and customer requirements.

I05 certified companies prove their systems through audits "y

independent registrars. Aegistrars are governed "y strict international

codes that dictate operating practices, audit methods, and staff

qualifications. /ailure to maintain quality program requirements will lead to

de-certification "y the registrar.

I05 certified company products reduce the need for the "uyers to perform

audits and reviews to determine if quality systems are in place and "eing

maintained.

# certificate of analysis from an I05 certified company will "e supported

"y documented procedures and records that demonstrate its validity. his

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is particularly important should a customer ever have a reason to question

product quality.

7uality is something every company strives for and is often times very difficult to

achieve.

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audits P (st, )nd, and *rd party audits. #n internal audit is a (st party audit. I05

C encourages 3and requires this type of audit so that an organi!ation can get

feed"ac quicly from those who now the company "est. 8owever, this audit

process cannot "e viewed as impartial. herefore, )nd party audits allow for a

consumer to evaluate the performance on an organi!ation. #s an alternative to a

)nd party audit, many companies choose to "ecome certified with I05 C

through a *rd party audit. In this case, an independent certification "ody comes

into an organi!ation and evaluates it in terms of the I05 C guidelines. If an

organi!ation meets the requirements of the standard, it "ecomes certified in I05

C and carries a seal of quality recogni!ed throughout the world.

Why is %!-

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delivering the products and services that the customer is looing for. With

nowledge of customer needs, resources can "e allocated appropriately and

efficiently. Most importantly, a "usiness=s dedication will "e recogni!ed "y the

customer, creating customer loyalty. #nd customer loyalty is return "usiness.

+. >ood :eadership

# team of good leaders will esta"lish unity and direction quicly in a "usiness

environment. heir goal is to motivate everyone woring on the pro4ect, and

successful leaders will minimi!e miscommunication within and "etween

departments. heir role is intimately intertwined with the ne&t I05 C principle.

2. %nvolvement of people

he inclusion of everyone on a "usiness team is critical to its success.

Involvement of su"stance will lead to a personal investment in a pro4ect and in

turn create motivated, committed worers. hese people will tend towards

innovation and creativity, and utili!e their full a"ilities to complete a pro4ect. If

people have a vested interest in performance, they will "e eager to participate in

the continual improvement that I05 C facilitates.

7. 5rocess approach to quality management

he "est results are achieved when activities and resources are managed

together. his process approach to quality management can lower costs through

the effective use of resources, personnel, and time. If a process is controlled as a

whole, management can focus on goals that are important to the "ig picture, and

prioriti!e o"4ectives to ma&imi!e effectiveness.

;. anagement system approach

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achieve improved productivity. 0ome results include integration and alignment of

ey processes. #dditionally, interested parties will recogni!e the consistency,

effectiveness, and efficiency that come with a management system. >oth

suppliers and customers will gain confidence in a "usiness=s a"ilities.

. *ontinual %mprovement

he importance of this principle is paramount, and should a permanent o"4ective

of every organi!ation. hrough increased performance, a company can increase

profits and gain an advantage over competitors. If a whole "usiness is dedicated

to continual improvement, improvement activities will "e aligned, leading to faster

and more efficient development.

Aeady for improvement and change, "usinesses will have the fle&i"ility to react

quicly to new opportunities.

@. 3actual approach to decision ma&ing

Effective decisions are "ased on the analysis and interpretation of information

and data. >y maing informed decisions, an organi!ation will "e more liely to

mae the right decision. #s companies mae this a ha"it, they will "e a"le to

demonstrate the effectiveness of past decisions. his will put confidence in

current and future decisions.

. !upplier relationships

It is important to esta"lish a mutually "eneficial supplier relationship% such a

relationship creates value for "oth parties. # supplier that recogni!es a mutually

"eneficial relationship will "e quic to react when a "usiness needs to respond to

customer needs or maret changes. hrough close contact and interaction with a

supplier, "oth organi!ations will "e a"le to optimi!e resources and costs.

Why is root cause analysis and systemic corrective action so important in

management system standards, such as %!-

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When pro"lem solving, it is important to find the cause of pro"lem in order to

develop a solution. 0ometimes, the most o"vious cause is not the right one. his

is why I05 C stresses the importance of finding the root cause3s of a

pro"lem. here may "e multiple, su"tle reasons why a process isn=t woring

correctly, and finding the actual causes will lead a company one step closer to a

solution and implementation of corrective actions.

he goal of finding root causes is to improve the way pro"lems are managed.

>ecoming adept in recogni!ing the root causes of a pro"lem will lead to a

reduced impact, a containment of error, and the prevention of recurrence.

Identifying and correcting root causes will also lead to the reduction of

unnecessary efforts which in turn will lower the cost of maintaining quality. #smore and more corrective actions are taen, processes will "ecome more sta"le,

and continual improvement will face less interruptions.

4o' does %!-

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monitor the progress of a product or service as it goes through each stage of

production, from development to testing to assem"ly to customer feed"ac.

5ne cornerstone of I05 C is continual improvement. Bo company should

ever "e satisfied with the conditions of a process at the given moment% they

should always "e looing for ways to mae these processes more efficient and

effective. I05 C was written with the "usiness world=s insatia"le desire for

e&cellence in mind. his is why continual improvement is a requirement of the

standard P to inspire progress and the pursuit of perfection.

I05 C is an internationally recogni!ed standard, and that may seem daunting

for some smaller "usinesses. 8ow are they going to implement the same

standard adopted "y multi-national corporations9 7uite easily, actually. I05 C

is a fle&i"le standard that lays down requirements for an organi!ation to follow,

"ut allows the organi!ation to fulfill these requirements any way they choose.

his increases I05 CQs scope of effectiveness, allowing a wide range of

companies to create quality management systems that match their needs.

I05 C is seen in every sector of the "usiness world, and its success is a

testament to its worth. With a focus on customer satisfaction, products andservices improve and flourish under I05 CQs quality management system.

With a com"ination of continual improvement and corrective actions P tenets of

I05 C P a "usiness will create processes that run smoothly and efficiently.

Q16eference#uthors' Integration of

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Q;6eference !trategic anagementC *ontemporary %ssues

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