Diploma ME 501 Industrial Management & Smart Technologies Unit-7 2021

Unit-7 Topics Covered

 Quality
 Quality Control
 Quality Assurance
 Quality Systems
 ISO 9000 Standards
 Total Quality Management
 Deming’s PDCA Cycle
 Kaizen

Management of quality:
“Quality is the ability of a product or service to consistently meet or exceed customer
expectations”
Quality as determinant of Revenue has been often neglected, people tend to associate quality
with high price of the product or item they want to purchase, historically speaking this is an incorrect
statement. The debate between American and Japanese philosophy proves that quality is offered free of
cost and is the prime source of revenue or profit.

NEED FOR CONTROLLING QUALITY

In the absence of quality, the following will result:
 No yardstick for controlling quality of goods
 Difficulty in maintaining consistency in quality.
 Dissatisfied customers due to increased maintenance and operating cost of products.
 Increased rework cost while manufacturing products
 Reduces lifetime of the products.
 Reduced flexibility with respect to usage of standards spare parts.
Hence controlling quality is essential activity.

Definition of Quality system

A Quality system is a process that combines with manufacturing process to ensure that a
manufacturing process produces quality-perfect products. The scope of a quality system is more than a
manufacturing process.

Overview

• As markets have become much more competitive - quality has become widely regarded as a key
ingredient for success in business.
• Today's business climate requires an exact interpretation of customer requirements coupled with
effective and efficient processes to meet or exceed their requirements.
• Product or service quality is “conformance with requirement, freedom from defects or
contamination, or simply a degree of customer satisfaction
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 Diploma ME 501 Industrial Management & Smart Technologies Unit-7 2021

Quality Control:
The operational techniques and activities that are used to fulfil requirements for quality.

Quality Control (QC) is a system of routine technical activities, to measure and control the quality.
The Quality Control system is designed to:
– Provide routine and consistent checks to ensure data integrity, correctness, and
completeness.
– Identify and address errors and omissions.
– Document and archive inventory material and record all QC activities.
QC activities include general methods such as accuracy checks on data acquisition and calculations and
the use of approved standardised procedures for calculations, measurements, estimating uncertainties,
archiving information and reporting.

Quality Control

Quality Control Tools:

• Check Sheets.
• Histograms.
• Pareto Charts.
• Cause and Effect Diagram(Ishikawa / Fishbone Diagram)
• Scatter Diagram.
• Control Charts.

Quality Assurance:
All those planned and systematic activities implemented to provide adequate confidence that an entity
will fulfil requirements for quality.

Quality Assurance is more than Just Testing

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 Diploma ME 501 Industrial Management & Smart Technologies Unit-7 2021

• Prevention-based systems which improve and maintain product and service quality, and increases
productivity by placing the emphasis on product, service and process design.
• QA, during production uses Statistical Process Control (SPC) and Fool-Proofing techniques.
• QA involves all departments (eg. Design, Manufacturing, Sales and Service etc.)

Purpose of Quality assurance

• To provide assurance to a customer on an agreed level of quality.
• To ensure that manufacturing and/or service standards are uniform.
• A commitment within an organization to the principal of consistently supplying with right quality
product.
• Quality Assurance (QA) activities include a planned system of review procedures conducted by
personnel not directly involved in the organizational process.

Quality assurance process

Quality control vs. quality assurance

Quality Control Quality Assurance

Based on Product. Based on Process.

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 Diploma ME 501 Industrial Management & Smart Technologies Unit-7 2021

Reactive Process. Proactive Process.

Stress on Line Function. Stress on Staff Function.

Finds Defect. Prevents Defect.

Examples : - Testing, Inspection, Checkpoint Examples : - Quality Audit, Selection of

Review etc Tools, Training etc.

Implementation of QA:
QUALITY ASSURANCE
 Development
 Design
 Production
 Installation documentation
 Service

1. QA covers all activities from design, development, production, installation, servicing and
documentation.
2. This introduced the rules: “fit for purpose" and "do it right the first time".14
3. It includes the regulation of the quality of raw materials, assemblies, products and components;
services related to production; and management, production, and inspection processes.

ELEMENTS OF A QA/QC SYSTEM

 The following are the major elements to be considered in the development of a QA/QC system to
be implemented in tracking inventory compilation:
 An inventory agency responsible for coordinating QA/QC activities;
 A QA/QC plan;
 General QC procedures (Tier 1);
 Source category-specific QC procedures (Tier 2);
 QA review procedures;
 Reporting, documentation, and archiving procedures.
 For purposes of the QA/QC system, the Tier 2 QC approach includes all procedures in Tier 1
plus additional
 Source category-specific activities.

PDCA (Plan Do Check Act)

Continually Improving, in a Methodical Way
Also known as PDSA, the "Deming Wheel," and "Shewhart Cycle"
 

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 Diploma ME 501 Industrial Management & Smart Technologies Unit-7 2021

Imagine that your customer satisfaction score on a business ratings website has dipped. When you look
at recent comments, you see that your customers are complaining about late delivery, and that products
are being damaged in transit.

So, you decide to run a small pilot project for a month, using a new supplier to deliver your products to a
sample set of customers. And you're pleased to see that the feedback is positive. As a result, you decide
to use the new supplier for all your orders in the future.

What you've just done is a single loop called the PDCA Cycle. This is an established tool for achieving
continuous improvements to your business.

The PDCA approach was pioneered by Dr William Deming, and we've worked closely with The Deming
Institute to produce this article. In it, we outline the key principles of PDCA, and explain when and how
to put them into practice.

What Is PDCA?
In the 1950s, management consultant Dr William Edwards Deming developed a method of identifying
why some products or processes don't work as hoped. His approach has since become a popular strategy
tool, used by many different types of organizations. It allows them to formulate theories about what
needs to change, and then test them in a "continuous feedback loop."

The Four Phases of the PDCA Cycle

With the PDCA cycle you can solve problems and implement solutions in a rigorous, methodical way.
Let's look at each of the four stages in turn:
1. Plan.
First, identify and understand your problem or opportunity. Perhaps the standard of a finished product
isn't high enough, or an aspect of your marketing process should be getting better results.
Explore the information available in full. Generate and screen ideas, and develop a robust
implementation plan.

Be sure to state your success criteria and make them as measurable as possible. You'll return to them
later in the Check stage.

2. Do.
Once you've identified a potential solution, test it safely with a small-scale pilot project. This will show
whether your proposed changes achieve the desired outcome – with minimal disruption to the rest of
your operation if they don't. For example, you could organize a trial within a department, in a limited
geographical area, or with a particular demographic.
As you run the pilot project, gather data to show whether the change has worked or not. You'll use this in
the next stage.

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 Diploma ME 501 Industrial Management & Smart Technologies Unit-7 2021

3. Check.
Next, analyze your pilot project's results against the expectations that you defined in Step 1, to assess
whether your idea was a success.

If it wasn't, return to Step 1. If it was, advance to Step 4.

You may decide to try out more changes, and repeat the Do and Check phases. But if your original plan
definitely isn't working, you'll need to return to Step 1.

4. Act.
This is where you implement your solution. But remember that PDCA/PDSA is a loop, not a process
with a beginning and end. Your improved process or product becomes the new baseline, but you
continue to look for ways to make it even better.
The four stages of the cycle are illustrated in Figure 1, below:

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 Diploma ME 501 Industrial Management & Smart Technologies Unit-7 2021

How to Use PDCA in Your Life

While PDCA/PDSA is an effective business tool, you can also use it to improve your own performance:

First, Plan: Identify what's holding you back personally, and how you want to progress. Look at the root
causes of any issues, and set goals to overcome these obstacles.

Next, Do: When you've decided on your course of action, safely test different ways of getting the results
that you want.

Then, Check: Review your progress regularly, adjust your behavior accordingly, and consider the
consequences of your actions.

Finally, Act: Implement what's working, continually refine what isn't, and carry on the cycle of
continuous improvement.

Total Quality Management

 Definition: TQM is a management philosophy, a paradigm, a continuous improvement approach
to doing business through a new management model.
 TQM is a comprehensive management system which:
 Focuses on meeting owners’/customers’ needs, by providing quality services at a
reasonable cost.
 Focuses on continuous improvement.
 Recognizes role of everyone in the organization.
 Views organization as an internal system with a common aim.
 Focuses on the way tasks are accomplished.
 Emphasizes teamwork.

TQM is composed of three paradigms:

Total: Organization wide
Quality: With its usual Definitions, with all its complexities (External Definition)
Management: The system of managing with steps like Plan, Organise, Control, Lead, Staff,
etc.

TQM principles
 People will produce quality goods and services when the meaning of quality is expressed daily in
their relations.
 Inspection of the process is as important as inspection of the product.
 Probability of variation, can be understood by scientific methods.
 Workers work in the system to improve the system; managers work on the system to improve the
system.
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 Diploma ME 501 Industrial Management & Smart Technologies Unit-7 2021

 Total quality management must be consistently translated into guidelines provided to the whole
organization.
 Envision what you desire, but start working from where you actually are.
 Cleaner site and safer place to work is also important.
 Accept the responsibility for quality.
 Use the principle of get it right, the first time, every time.
 Understand that quality is a journey, not a destination.

Steps in implementing TQM

1 Obtain CEO Commitment
2 Educate Upper-Level Management
3 Create Steering Committee
4 Outline the Vision Statement, Mission Statement, & Guiding Principles
5 Prepare a Flow Diagram of Company Processes
6 Focus on the Owner/Customer (External) & Surveys
7 Consider the Employee as an Internal Owner/customer
8 Provide a Quality Training Program
9 Establish Quality Improvement Teams
10 Implement Process Improvements
11 Use the Tools of TQM
12 Know the Benefits of TQM

Pitfalls to be avoided in TQM

Many companies have started on the road to quality but failed to achieve success due to several
factors, these are listed as follows:
 Lack of top management support.
 Lack of middle management support.
 Commitment in only one department.
 Short-term commitment.
 Failure to acquire the services of a competent statistician.
 Measure success and guide program.
 Over dependence on computerized quality control.
 Funding failure.
 No market research.

Benefits of TQM
Customer satisfaction oriented benefits:
1. Improvement in product quality
2. Improvement in product design
3. Improvement in production flow
4. Improvement in employee morale and quality consciousness
5. Improvement in product service
6. Improvement in market place acceptance
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 Diploma ME 501 Industrial Management & Smart Technologies Unit-7 2021

Economic improvement oriented benefits:

1. Reduction in operating costs
2. Reduction in operating losses
3. Reduction in field service costs
4. Reduction in liability exposure

What is Kaizen?
Kaizen is an approach to creating continuous improvement based on the idea that small, ongoing positive
changes can reap significant improvements. Typically, it is based on cooperation and commitment and
stands in contrast to approaches that use radical or top-down changes to achieve transformation. Kaizen
is core to lean manufacturing and the Toyota Way. It was developed in the manufacturing sector to lower
defects, eliminate waste, boost productivity, encourage worker purpose and accountability and promote
innovation.

Kaizen has its origins in post-World War II Japanese quality circles. These circles or groups of workers
focused on preventing defects at Toyota. They were developed partly in response to American
management and productivity consultants who visited the country, especially W. Edwards Deming, who
argued that quality control, should be put more directly in the hands of line workers.

10 principles of Kaizen
Because executing Kaizen requires enabling the right mindset throughout a company, 10 principles that
address the Kaizen mindset are commonly referenced as core to the philosophy. They are:
1. Let go of assumptions.
2. Be proactive about solving problems.
3. Don't accept the status quo.
4. Let go of perfectionism and take an attitude of iterative, adaptive change.
5. Look for solutions as you find mistakes.
6. Create an environment in which everyone feels empowered to contribute.
7. Don't accept the obvious issue; instead, ask "why" five times to get to the root cause.
8. Cull information and opinions from multiple people.
9. Use creativity to find low-cost, small improvements.
10. Never stop improving.

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 Diploma ME 501 Industrial Management & Smart Technologies Unit-7 2021

Kaizen cycle for continuous improvement

Kaizen can be implemented in a seven-step cycle to create an environment based on continuous
improvement. This systematic method includes the following steps:
1. Get employees involved. Seek the involvement of employees, including soliciting their help in
identifying issues and problems. Doing so creates buy-in for change. Often, this is organized as
specific groups of individuals charged with gathering and relaying information from a wider
group of employees.
2. Find problems. Using widespread feedback from all employees, gather a list of problems and
potential opportunities. Create a list if there are many issues.
3. Create a solution. Encourage employees to offer creative solutions, with all manner of ideas
encouraged. Pick a winning solution or solutions from the ideas presented.
4. Test the solution. Implement the winning solution chosen above, with everyone participating in
the rollout. Create pilot programs or take other small steps to test out the solution.
5. Analyze the results. At various intervals, check progress, with specific plans for who will be the
point of contact and how best to keep ground-level workers engaged. Determine how successful
the change has been.

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 Diploma ME 501 Industrial Management & Smart Technologies Unit-7 2021

Kaizen 5S framework
A 5S framework is a critical part of the Kaizen system and establishes an ideal physical workplace. The
5Ses focus on creating visual order, organization, cleanliness and standardization to improve
profitability, efficiency, service and safety. Below are the original Japanese 5Ses and their common
English translations.
1. Seiri/Sort (organize). Separate necessary workplace items from unnecessary ones and remove
unnecessary items.
2. Seiton/Set in order (create orderliness). Arrange items to allow for easy access in the way that
makes the most sense for work.
3. Seiso/Shine (cleanliness). Keep the workspace clean and tidy.
4. Seiketsu/Standardize (standardized cleaning). Systematize workplace cleanup best practices.
5. Shitsuke/Sustain (discipline). Keeps the effort going.

Kaizen advantages
1. Kaizen's focus on gradual improvement can create a gentler approach to change in contrast to big
efforts that may be abandoned due to their tendency to provoke change resistance and pushback.
2. Kaizen encourages scrutiny of processes so that mistakes and waste are reduced.
3. With fewer errors, oversight and inspection needs are minimized.
4. Employee morale improves because Kaizen encourages a sense of value and purpose.
5. Teamwork increases as employees think beyond the specific issues of their department.
6. Client focus expands as employees become more aware of customer requirements.
7. Systems are in place to ensure improvements are encouraged both in the short and long terms.

Kaizen disadvantages
1. Companies with cultures of territorialism and closed communication may first need to focus on
cultural changes to create a receptive environment.
2. Short-term Kaizen events may create a burst of excitement that is shallow and short-lived and,
therefore, is not sustained.

 Quality Systems
 ISO 9000 Standards
 Pillars of TQM

Above 3 topics will be marked in Text Book

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