Syllabus for Quality Management 1.

Quality (Basic Concepts) : Meaning of quality, Quality functions, quality spiral, quality dimensions, quality costs, evolution of quality. 2. Designing for quality : Concept of costs v/s effectiveness, reliability, dependability, maintainability, safety. 3. Quality in Purchasing : Vendor selection, vendor capability, vendor survey, vendor rating, vendor relationships. 4. Quality in manufacturing : Quality planning, tolerance review, process design, process capability, process control, process audits, problem solving : breakthrough sequence, 7 tools, quality measurements, SQC, acceptance sampling. 5. Service quality : Dimensions of service quality, TQM in service, Process focused approach, Service positioning, Design of services, Characteristics of customer, Aiming at total customer satisfaction, Servequal model. 6. Company-Wide-Quality Control/TQC : Quality planning, quality control, quality improvements, strategic quality management, workforce and quality, motivation for quality. 7. Systems approach : System concepts. ISO 9000, TS 16949, ISO 14000. 8. Modern quality concepts : Contribution of Dr. Deming, Juran, Crosby, Ishikawa, Taguchi, Shingo. 9. Total Quality Management : Concept, Building blocks for TQM, Tools used for TQM Text books 1. Quality Planning and Analysis : J.M.Juran / Gryna. 2. Juran on Leadership for Quality.: J.M.Juran. Reference Books 1. 2. 3. 4. The Essence of TQM : Hunsen and Ghare. Booklets of standards for : ISO 9000 : 2000 series, ISO 1400 series and TS 16949. Out of the crisis : W.E.Deming A system of knowledge : W.E.Deming.

Syllabus for Business Forecasting ] i. ii. Introduction to Business Forecasting Forecasting Process, Data Considerations and Model selection

iii.

Moving Averages and Exponential Smoothing Techniques {Including Holts and winters Model} Introduction to Forecasting with Regression Methods Forecasting with Multiple Regression Methods Time Series Decomposition ARIMA [Box-Jenkins] Forecasting Models Econometric Modeling and Forecasts Combining forecast results and Forecast implementation Communicating forecasts to management.

iv. v. vi. vii. viii. ix. x.

Reference Book Business Forecasting :Textbook 1:J.Holton Wilson and Barry Keating. Business Forecasting, Fifth Edition [McGraw-Hill/Irwin,2007] Textbook 2: Business Forecasting,John E.Hanke and Dean W.Wichern, 8th edition, Prentice Hall Textbook 3: Business and Economic forecasting for the Information Age, A Practical Approach, A. Reza Hoshmand,Quorm Books, Westport,Connecticut,2002

Meaning of quality: Meaning of quality changes from 1. Person to person 2. Time to time (Even for the same person) 3. Situation to situation. This makes quality very difficult to define though there are innumerable efforts to do it from the ancient times of Greek philosophers

Definitions of quality. Quality definitions are categorized in broadly in following four categories. A few in each category are given below. 1. Excellence based: The good , the highest form, the highest form of them all Plato A mark of uncompromising standards and high achievements which is both absolute and universally understood Anonymous

2. Value based: Best for certain customer conditions, made up of two elements: 1. Actual use 2. Selling Price - Fiegenbaum A predictable degree of uniformity and dependability at low costs and suited to market Deming. Affordable excellence. Anonymous.

3. Conformance based: Conformance to specifications Shewhart Conformance to requirements Crosby

4.Customer oriented: Fitness for intended use Juran Meeting and exceeding customers expectations. Granroose Totality of features and characteristics of product/service that bears on its ability to satisfy given needs ANSI Totality of features and characteristics of product/service that bears on its ability to satisfy given and implied needs ISO Avoidable loss to the society from the time the product is shipped.

Exercise : 1. Elaborate on strengths and weaknesses of each of the above definitions 2. Which in your opinion is the most satisfactory definition? Why?

Quality terms 1. Quality Characteristics :- Building blocks on which quality of the product/service is based 2. Classification of quality characteristics :- A) Structural, Sensory, Time Oriented, Commercial, Aesthetic and Ethical B) Seriousness Classification Class 1Vital for performance or safety followed by Class II, III, and IV in descending order of importance. 3. Quality Function :- Activity in the supply chain which adds value to the product. 4. Quality Spiral :- Entire set of activities through which fitness for intended use is aceived. Depicted as a speral or Loop due to its continuous nature in order to achieve ongoing product upgradation to cater to ever changing customer expectations. 5. Quality Dimensions :- Performance, Features, Reliability, Conformance, Durability, Serviceability, Aesthetics, Percieved quality. 6. Quality costs :_ Costs incurred in making, finding, correcting or preventing defective products. A) Failure costs :- Internal Failure Costs Scrap, rejections, rework, adjustments, compromises. External failure costs Customer rejections, returns, sorting out and corections at customers end, discounts, fines imposed by customer. B) Appraisal costs :- Inspection & testing C) Preventive costs :- Systems, training, fool-proofing, audits, As preventive costs go up, appraisal and failure costs come down As appraisal costs go up, internal failure costs go up but external failure costs may come down

PRODUCT Product is the output of any process and can take any of the following three forms: Goods Physical or tangible form of a product. Software Instructions or information e.g. computer software package. Service Work performed for someone else. Features of modern products: * Complex * Inter-changeable * Environment friendly * Short life cycle * Highly reliable * Readily available * High precision * Durable * Low user costs * Prone to misuse * Easily maintainable * Competitively priced.

Product Design: A creative process resulting in specifications, drawings, software and/or procedures which form the basis for product features which are required to satisfy the customer requirements. Optimum Design. a) Should meet the entire set of customer Requirements b) Minimize the combined costs for manufacturer and customer.

DEVELOPMENT OF NEW PRODUCTS

Market Requirement

Development Programme

Setting Product Standards

Fundamental Design Selection of Purchase Design of Key Parts

Test & Analysis

Trial Tests

Approval Yes

No

No

Approval Yes

Detailed Design

Trial Production & Test

Final Approval

Commercial Production

DESIGN REVIEW SYSTEM

Review No. 1 2 3 4 5 6 7 8

Purpose Confirmation of Specifications. Review of Fundamental Design Review of Detailed Design Review of Manufacturing Plan Review of Manufacturing Results. Review of Test/Inspection Procedure Review of Product Quality Over-all Review Concept of cost effectiveness.

Life cycle costs

Product effectiveness

Capability

Dependability

Availability Readiness Maintainability Serviceabilty

Power Range Accuracy Speed Concept studies Product Development

Reliability Safety Survivability Flexibility

Productio Operating Service Repairs Training Disposal

Availability

Probability that a product, when used under given conditions will perform satisfactorily when called upon. Uptime (Availability) Downtime (Unavailability)

In active use

Standby

Under repair

Waiting for parts.

Availability is a function of reliability and maintainability. RELIABILITY Probability of a product performing without failure, a specific function under given conditions for a specified period of time. Elements of reliability programme: Setting overall reliability goals. Apportionment of reliability goals. Reliability predictions. Design reviews.

Stress analysis. FMEA and Fault Tree Analysis. Identification of critical parts. Parts selection and control. Reliability testing. Selection of suppliers. Control of reliability during production. Failure reporting and corrective action system.

Reliability goals. MTBF (Mean Time Between Failures):- Average time between successive failures of a repairable product. MTBM (Mean Time Between Maintenance):- Average time between successive specified maintenance. MTTF (Mean Time To First Failure):- Average time for the first failure of products in a population. Longevity:- Wear out time of the product. B10 Life:- Life during which 10% of the population would fail. Repair / 100:- Number of repairs in 100 hours of operation.

Apportionment of reliability Process of allocating reliability objectives amongst various elements, which collectively make up a higher level product. Reliability prediction. Use of prior performance data plus probability theory to calculate the expected failure rate of various sub-parts. Design review. Design review is a technique for evaluating following factors at design stage:

Ready and economical availability of raw material and parts. Manufacturing capability at reasonable costs. Ability of the product to satisfy customer requirements. Verifiability of the product during manufacture and at shipping stage. Easy maintainability and serviceability of the product.

Design review should be: Mandatory and formal. Conducted by a committee of functional experts. Conducted at every major stage of design. Able to cover all quality related parameters. Done to a defined criteria. Stress analysis. Identification of strong and weak portions of design to serve as basis for improvements, trade-offs etc. Failure Mode and Effect Analysis Procedure: Product is examined for all the ways in which a failure can occur, preferably in a brain storming session. Effect of each failure on total system and its seriousness is assessed. Risk priority number (probability of failure x Seriousness to the system) is given to each mode of failure. Part with highest risk priority number is taken up for improvement in design Fault Tree Analysis. Procedure: A list of all likely hazards / undesired events is prepared. Each hazard becomes a failure mode requiring analysis. Analysis leads to possible causes and their origin. Ways to avoid these causes and their origins are explored. Parts selection and control. Reliability of final product primarily rests on the reliability of the constituent parts. Recommended steps for ensuring reliability of individual parts are: A) Parts application study: Assessment of specifications and information given by the supplier of the parts. Previous history of used parts.

Qualification tests in case of new applications. These tests can include stress test, thermal analysis, destructive tests, de-rating etc.

B) Approved parts list. C) Critical component list: Parts can be termed as critical when: Population of the parts is high. Source of supply is only one. Precision required is high. Parts are unproved D) De-rating of functionally critical parts: Parts designed for higher stress levels are used. E) Use of higher safety factor in design. Reliability Testing Parameters covered are: Performance. Environment. Stress. Reliability. Maintainability Total life. Accelerated Testing: Products are made to perform at abnormally high levels of stress and severe environment. Extrapolation is then used to convert the short life under severe conditions to expected life under normal conditions. Maintainability. Ease and speed at which a repairable product, which has failed, can be repaired, keeping the costs of repair at minimum. Maintenance is basically of two types: Preventive maintenance. Corrective maintenance.

Elements of maintainability goals.

Setting maintainability goals. Apportionment of goals. Identification of critical parts. FMEA & Fault Tree Analysis. Maintainability predictions. Failure reporting and corrective action system.

Quantification of Maintainability. MTTR (Mean Time To Repair) Average time taken for repairs considering that the spare parts and skilled technicians are available. Mean Downtime Average time for repairs during a specified time span. Repair / 100 hours Total repair time during 100 hours of operation. Trade-offs for maintainability. Safety. Reliability v/s Maintainability. Modular v/s Non-modular construction. Repairable parts v/s throw away parts. Person v/s machine.

Safety has two dimensions: Hazard Attribute of a product that is capable of harmful result. Risk Probability of injury occurring or product getting damaged due to hazard during the use of the product.

Classification of hazards: Class I Negligible. Will not cause any injury to the user or damage to the product. Class II Marginal Can cause minor injury to user or damage to the product.

Class III Critical Will cause fairly serious injury to the person or major damage to the product. Class IV Catastrophic Will cause death or loss of limb. General approach to safety analysis.

Review available historical data on similar and predecessor products. Study the ways in which the product has actually been used or misused. Assess the risk that injury to the user or damage to the product will actually occur NEW APPROACHES TO DESIGN AND DEVELOPMENT

Quality Function deployment / House of Quality. Systematic process of capturing customer requirements and translating these into requirements that must be met throughout the supply chain. QFD is a systematic process of motivating a business to focus on its customers. Customer needs are properly understood and then translated into a set of design and manufacturing requirements. Correct use of QFD lowers costs, improves quality, cuts down throughput time, improves productivity. Identification of customers. Market research. Customers served by the competitor. Customers previously neglected. Current customers.

Customer needs. Stated and real needs. Perceived needs.

Cultural needs. Needs arising out of unintended use.

Four phases of QFD. Phase I :- Product planning Defining customer requirements in relation to product parameters. Phase II :- Design & Development Converting the required product parameters into a set of specifications, drawings and/or instructions and test their viability through prototypes, pilot runs and extensive testing. Phase III :- Process planning Decide on the processes required to convert the design specifications into product characteristics. Phase IV :- Production Planning Involving all employees and plan their activities and interactions to achieve customer expectations. Steps in building House of Quality. Gather all information about customer/non-customer requirements. Assign values for importance of each requirement on a scale of 1 5 . Convert customer requirements into design specifications. Build a relationship matrix for customer requirements v/s specifications and rate each relationship. Get from the customer, evaluation of competitors product against each of his requirements. Compare customers evaluation against rating of importance given by customer to set target values for customers requirements. Give overall customer importance number, which is the product of values attained in step 2 and 6.

Theory of inventive problem solving in design (TRIZ).

Structured, technology based methodology for resolving technical problems during design process.

Russian scientist Dr. Genrich Altschuller, studied 400,000 patents and concluded: Similar problems in different industries using different science and technology are solved with similar solutions. Hence Finite number of principles can be used to solve problems or conflicts within a finite number of technical parameters. Thus If the problem is defined in generic terms to match the conflict between two of the design parameters, you could learn how others have solved conflicts between same two parameters and apply the their solution to your problem. Taguchi Principle (Robust Design). Quality is the loss imparted to the society from the time the product is shipped Taguchi Loss is measured by Loss Function. Loss Function = Loss constant x Variation of process. Principles: Costs cannot be reduced without affecting the quality. Quality can improve without increasing the costs. Costs can be reduced by improving quality. Costs can be reduced by reducing the variation, which in turn will improve performance and quality.

Two sets of factors cause variation: Controllable Control factors. Difficult or impossible to control Noise factors.

Concept of robust design is to find the best combination of the controllable factors in order to minimize the negative effects of noise factors.

Control factors are identified during design of product parameters with an intention to find the best combination of material, processes and specifications by maximizing Signal to Noise ratio (S/N Ratio) Where: Signal Desired output. Noise Whatever gets in the way of getting the desired output. High S/N ratio means that the product design is more robust.

Quality in Purchasing For most companies, major cost component is material purchased from various suppliers. As this material forms a part of the final product, its quality makes a large impact on the quality of the final product. Purchasing Policy :- Following points need consideration while developing Purchasing policy of the organization which will form a part of Strategic Management. Make or buy decisions. Single source v/s Multiple source. Review of requirements. Vendor involvement. Data sharing. Procedures for vendor rating and related decisions for share of business. Technological, managerial and Economic cooperation. Vendor quality survey :- Normally done through a detailed questionnaire and personal visits to cover vendors strengths/weaknesses on following aspects. Overall and Functional Management. Market reputation. Design procedures and competence of designers. Manufacturing processes and technology used. Quality Control systems. Inspection and Test equipment and procedures. Data generation, recording and analysis leading to prompt corrective actions. Qualification / skill levels / competence / knowledge / motivation of Personnel. Quality results. A quantification system can be developed to assess the vendors overall capabilities as well as capabilities in individual functions. Joint quality planning :- To be done in three areas:

1. Economic a) Emphasizing on buying value rather than price negotiations. b) Optimising Quality Costs at both ends. 2. Technological a) Agreement on performance. b) Quantification of Reliability, Maintainability. c) Manufacturing, Inspection and Test practices. d) Sampling plans. e) Identification and Traceability. 3. Managerial a) Responsibility sharing. b) Documentation and reporting c) Communication channels. Evaluation of incoming product :- Can be done in any of the following ways: a) 100 % b) Sampling c) Identification of the product d) No inspection e) Vendor inspection reports. Vendor Rating :- Normally done on four counts though every company can choose its own system for rating. 1. Quality rating QR Q1 x W1 + Q2 x W2 + Q3 x W3 QR
= ------------------------------------------------------------------

x 100

Q Where Q1 = Quantity accepted from the lot and W1 its weightage Q2 = Quantity accepted under deviation from the lot and W2 its weightage Q3 = Quantity accepted from the lot after rectification and W3 its weightage Q4 = Quantity rejected from the lot. Its weightage being 0 it need not feature in the formula Q = Total lot quantity = Q1 + Q2 + Q3 + Q4. 2. Price rating PR PL PR = ---------- x 100 P Where P = Price offered by the vendor under rating PL = Least price offered by a competing vendor. 4. Delivery rating DR Q1 T DR = ----- x -------------------------- x 100 Q T x p + 1.5 x T1 x q Where Q = Quantity promised in time T Q1 = Quantity delivered in time T T1 = Actual delivery time for the full consignment

Q1 p = --------- and q = 1 p Q 5. Service rating :- Done on subjective basis on a number of parameters whose sum total of possible maximum points should be 100 e.g. Cooperation (S1) 35 points Replacement of defectives (S2) 25 points Corrective actions (S3) 20 points Documentation (S3) 20 points.

Composite vendor rating for the lot :-

VR = QR x W1 + DR x W2 + PR x W3 + SR x W4 Where W represents respective weightages whose sum total is 1. Average rating for k number of lots :n1VR1 + n2VR2 + -------- + nkVRk Average rating = ---------------------------------------n1 + n2 + ------------ + nk Where n1 , n2 etc are respective lot quantities. Based on the ratings vendors can be placed in A, B or C categories for allocating business shares and taking corrective actions for vendors in B and C categories. Quality in manufacturing 1. Quality in Planning for manufacturing :A) Design Review 1. Establish compatibility between tolerances and Process Capability. 2. Separate functional and non-functional characteristics for selective attention. 3. Relaxation of unnecessary tolerances for cost reduction. B) Process Design Explained in greater details below. C) Fool Proofing ,, D) Concept of dominance ,, PROCESS. A systematic series of activities directed at converting inputs into desired outputs.

The organization of people, equipment, energy, procedures and material into work activities needed to provide a specific end result. A sequence of repeatable activities characterized as having measurable inputs, value adding activities and measurable outputs. It is a set of interrelated work activities characterized by a set of specific inputs and value added tasks that result in a set of specific outputs. PROCESS DEVELOPMENT A generic term, which includes following activities: Product design review. Choice of processes. Process design. Provision of facilities. Provision of software (Methods, procedures, information) Setting standards for process performance. PROCESS DESIGN An activity of defining the specific means to be used by the operating people for meeting the product goals. These specific means are: Physical equipment and associated software to be used. Information on how to operate, control and maintain the equipment. Information on: a) The inputs required. b) Process performance standards. c) Variables influencing the process. d) Sequence of activities e) Internal / external customer requirements.

Supporting Processes: Waste reduction. Selection and Training of employees. Communication and recording of data. Development of supplier capability. Infrastructure building and improvement. Problem prediction and prevention. Monitoring. Features of Operating Plan of Process.

Input and Output requirements. Full description of Activities within the process. Verification and validation requirements. Analysis including dependability. Identification, assessment and mitigation of risk. Correction and Prevention actions. Opportunities and actions for improvements. Control of changes in the process.

Features of a well designed Process. Simplicity. Flexibility. Speed. Accuracy. Economy. Customer Focus

Parameters for Measurement of Process Performance. Capability. Reaction Time. Throughput Time or Cycle Time. Dependability. Yield i.e. Ratio of output to input. Utilization of relevant technologies. Waste reduction. Cost allocation and cost reduction. PROCESS ANALYSIS The systematic examination of Process Model to establish a comprehensive understanding of the existing process with a view to simplify the process, eliminate unwanted / redundant elements and explore possibilities of combining with other processes. Process analysis should aim at: Reducing :- time, costs, complexity, fatigue and monotony. Improving :- safety, reliability, flexibility and quality of output.

CONCEPT OF DOMINANCE.

A process normally has numerous variables but variables associated with a particular factor may dominate and influence the process. Some major factors, which can dominate a process, are: Setup of equipment Punching and pressing operations. Machine Process has inherent rate of change as tome passes e.g. wear of tool. Operator Skill level of operator. Component Quality of purchased parts. Information Proper understanding of customer requirements. FOOL-PROOFING An activity aimed at bringing the output defectives from a process to zero. This can be achieved in following ways: Making it impossible for the machine to continue to produce the moment a defective is sensed, by incorporating suitable hardware and software in the machine. Through redundancy Multiple impossible events are required to occur simultaneously before a defect can be made to escape. Helping human abilities e.g. Optical magnification. Eliminating error prone elements while designing.

2. Quality in Manufacturing :A) PROCESS CAPABILITY Process capability is a measure of the inherent uniformity of the process. Every process is subject to variation due to two distinct sets of causes: a) Assignable causes:- Causes which are external to the process b) Random causes :- Causes which are part of the process. When assignable causes are removed and process is influenced only by random causes, it is in Statistical Equilibrium Steps in calculating Process Capability Index. 1. 2. 3. 4. 5. Ensure that the process is in a state of statistical equilibrium. Determine the size of sample group and sample size. Design a suitable tally sheet. Collect data under standard operating conditions without adjustments. From every sample, calculate average ( X ) of all readings and Range ( R ) which is the difference between largest and smallest reading in the sample.

6. Calculate average of averages of all groups ( X ) and average of range ( R ). R s = ------------ where d2 is a d2 10 3.85

7. Calculate standard deviation ( s ) by formula constant depending on group size Group size Value of d2 4 2.06 5 2.33 6 2.53 8 2.85

8. Calculate Potential Process Capability Index ( Cp ) Specification tolerance Cp = -------------------------------Process spread USL LSL = ----------------6xs

9. Calculate Process Capability Location Index ( Cpk ) USL X Cpk = ---------------- or 3xs 10. Conclusions: X LSL -------------- whichever is lower. 3xs

a) If Cp is more than or equal to 1 :- Process is capable. b) If Cpk is more than or equal to 1 :- Process is meeting the specification requirements. c) If Cp is more than or equal to 1 but Cpk is less than 1 :- Process is capable but does not meet the specifications due to poor centering. Multiple uses of Process Capability. To predict extent to which the process will be able to hold tolerances. To choose the best suited process for the requirements. To plan interrelation of sequential processes. To decide on periodic process control charts. To assign the machines to classes of work for which these are best suited. To test the theories of causes of defects during quality improvement programmes. To decide on purchase of new machines.

B) CONTROL STATION Points at which parts are to be verified during processing. Choice of these points can be: Critical for quality or bottleneck operations. Transfer points between two departments. Natural peepholes in the processing chain.

C) Auto Process Regulation :- Can be done through either Analog or Digital designs which makes it impossible to run the process with defective parts. D) Operator self control :- Responsibility of quality is with the operator. Prerequisites for this are: Operator must have full job knowledge. He should be aware of acceptable standards against which actual performance is to be checked. He should have access to corrective actions. He should be given authority to take decisions relevant to his job. Inspection A) Planning :- 1. Choice of location Inward, setup, in-process, transfer points, critical operations, natural peepholes, final. 2. Choosing and interpreting quality characteristics. 3. Detailed planning involving Choice of instruments, methods, sample size, acceptance criteria, decisions for running/stopping, data recording. B) Disposition :- Involves following decisions: Conformance. Fitness for use Communication Disposal. Acceptance Sampling. Process of evaluating a portion of the lot for the purpose of accepting or rejecting the entire lot. Parameters involved with symbols used: Lot size N Sample size n Acceptance number c Percent Defectives in the lot p Probability that the lot will get accepted Pa Producers risk i.e. possibility that a good lot will get rejected - Consumers risk i.e. possibility that a bad lot will get accepted - Acceptable Quality Level AQL Worst quality level that is still acceptable Rejectable Quality Level RQL Indifferent Quality Level IQL Level at which probability of acceptance is 50% Lot Tolerance Percent Defective LTPD Average Outgoing Quality Level AOQL Point at which, percent defectives will reach its maximum.

Advantages of Acceptance Sampling : Saves time Reduces costs Reduces monotony of 100% checking thereby improving accuracy of checking Dramatizes defects prompting quicker corrective actions.

Operating Characteristic Curve :- A graph of percent defective in a lot against probability of its acceptance. 1.0

Pa 0.5

0 AQL IQL RQL p

Different Sampling Plans :A) Sampling Plans for Attributes 1. Dodge Romig Plan More useful for In-process or Final Inspection. Either based on AOQL or LTPD levels and suitable for both single and double sampling methods. 2. ISO 2859 or MIL STD 105 D Plans Suitable for incoming inspection. These are classified by AQL . Risk to producer decreases as lot size increases. These plans have seven levels General (I, II, III) and Special (S1 , S2 , S3 & S4). B) Sampling Plans for Variables ISO 3951 & MILD STD 414. These are classified by AQL and have 5 inspection levels and three possible acceptance procedures.

Quality in Service Service quality has two essential points of difference from the Product quality: 1. Its intangible nature. 2. There is no time lag between production and consumption. Dimensions of Service Quality :1. Reliability Ability to perform the promised service dependably and accurately. 2. Responsiveness Willingness to help and ability to recover quickly when service fails. 3. Assurance Knowledge and curtsey of employees and their ability to convey trust and confidence. This will result from competence, effective communication, politeness and attitude. 4. Empathy Caring and individualized attention (Approachability and constant effort to understand customers needs). 5. Tangibles Physical facilities, equipment, personnel, communication material Expected Service (Se) v/s Perceived Service (Sp) :Word of mouth Personal needs Past Experience

Se Dimensions of Service quality Sp When : Sp is greeter than Se -- Customer delight Sp is equal to Sp is less than Se -- Customer satisfaction Se -- Customer dissatisfaction Perceived Service Quality

Gap Model :Se 5 Sp Service delivery 1 3 Service Design 2 Management perception of Se 4 External communic. to customer

Servqual :- It is a multiple item scale developed for measuring five dimensions of service quality. It is a two part instrument. Part I records customer expectations for each dimension though a series of questions designed for this purpose. Part II records customer perceptions for each of the question recorded in Part I. Score for quality of service is calculated by comparing the difference between ratings the customer assign to the paired expectations and perceptions. The final score refers to gap 5. Scope of Service Quality :1. Content Developing standard operating procedures, which service personnel are expected to follow. 2. Process Maintaining a logical sequence of activities and well coordinated use of service resources. 3. Structure physical facilities to be supported by organizational design that is adequate for service. 4. Outcome Measuring extent of customer satisfaction. 5. Impact Long range effect on the life of customer.

Tools for Service Quality :1. Service Process Control : Customer inputs Service Concept

Resources

Service Process

Customer output

Take corrective Actions

Monitor conformance

Establish measures for performance

Identify reasons For non-conformance 2. Training of service personnel in the areas of : Management training, Communication, Manners and etiquettes etc. Individual development, Positive attitude,

3.Developing standards of performance supporting this through regular feedbacks and reinforcements. 4. Designing a fair career progression system 5. Creating a healthy organizational culture 6. Opinion surveys. Points for Service Design Decisions :Location, Facility design, Layouts, Procedures, Measures of quality, Customer contact, Standardization, Capacity

CHAPTER VIII

QUALITY SYSTEM STANDARDS

Over a period of time, concepts of Quality have evolved through some distinct phases, which are shown in the table below. During ancient times, when concept of repetitive production was not there, goods were manufactured in small family set-ups by the skilled artisans as per requirement of individual buyers. Quality was the responsibility of the buyer and the concept was known as Caveat Emptor, which meant Buyer be aware. Slowly the concept of inspection and segregation was introduced by the manufacturers so that the buyer could get the goods as per specifications. Industrial revolution, which started in Europe, changed everything in manufacturing world. Organizations grew in size as now production in large volumes was possible. Necessity was now felt to Control the quality through experts who were independent from manufacturing people. Soon there was a realization that Quality Control was not potent enough to ensure that only the correct product reaches the customer and at the same time costs also had to be kept under check and need for Quality Assurance or Quality at Source was realized. Introduction of Quality System Standards was the result of this realization. Quality System Standards deal with three important aspects of organizations operations viz Quality Elements, Quality System and Quality Management Important terms used in Quality System Standards. Quality Elements Are all those activities pertinent to the quality of the product and involving all phases in the life cycle of a product and processes, from initial identification of market needs to final satisfaction of requirements. These Quality Elements are also sometimes referred to as Quality Functions. Each such Quality Function is a building block on which quality of the product is constructed and is an important part of the total Value Chain of the organization. All these Quality Functions form a part of Quality Loop and are depicted on the loop in a sequential manner with marketing as the first function, as this is the function which has the responsibility for identifying the customer requirements. The loop ends again with marketing as the feed back from customers on the products fielded in the market is again the responsibility of marketing. This feed back should lead to improvements through the sequential processes down the Quality Loop and the process becomes endless leading to Continuous improvements. Quality System The term denotes, the organization, structure, procedures, processes and resources which are required to implement Quality Management. Basically, Quality System is in two parts: 1. Documentation of all procedures and instructions for all the activities specified in the standard.

2. Implementation of the documented procedures and demonstration by records. Quality Management It is that part of Management function, which encompasses all activities that determine the Quality Policy, Quality Objectives and Quality Responsibilities and implements them through Quality Planning, Quality Control, Quality Assurance and Quality Improvements within the framework of Quality System. In ISO 9000, Quality Management is defined as: That aspect of the over-all management function that determines and implements the Quality Policy Quality Policy specifies the over-all Quality intentions and directions of an organization as regards Quality, as formally documented by the Top Management. Following aspects are covered under Quality Management A) Strategic Planning * Identification of Quality Factors. * Determination of level of competence of Employees. * Initiating, Developing, Implementing and Maintaining Quality System. B) Allocation of Resources. * Human Resources to Manage, Perform and Verify Quality Functions. * Equipment for Design/Development, Manufacturing and Inspection/Testing. * Instrumentation and Software. C)Organization. * Organizational Structure with clear allocation of Responsibility with commensurate authority. * Establishing inter-relationship between various positions. D)Quality Policy. * Formulating, Documenting and implementing Quality Policy * Establishing Organizational and Departmental Quality Objectives to support Quality Policy. E)Management Review. Periodic and Formal Review must be carried out by a Team of Senior Managers with executive responsibility for following points: * Continued adequacy of Quality Policy and Quality Objectives.

* * * *

Adequacy of Quality System. Internal/External Audit reports. Customer Feedback / Complaints. Improvements.

ISO 9000
General Information * ISO 9000 series is a set of standards which promotes the concept of an internationally applicable Quality System. * The standards are issued by International Organisation of Standardisation with headquarters at Geneva, Switzerland. * These standards are applicable Internationally * ISO 9000 are System standards and NOT Product standards. History of ISO 9000 standards. * Origin of the standards can be traced to MIL Q 9838 standards of US Defense Dept., which were the first Quality System Standards formulated. * These were followed by NATO adopting Allied Quality Assurance Programme AQAP - 1 - 1968. * Sensing the advantages of these standards in terms of consistency of quality from the suppliers, many countries developed their own Quality Systems Standards. * International Organization for Standardization, whose main objective is to promote rationalization of standards of its member countries, set up the committee TC176 to rationalize all the international standards on Quality Systems. * The committee prepared and approved the ISO 9000 Series which was first introduced in1987 as ISO 9000 : 1987 standards. * These standards were first reissued in a modified form as ISO 9000 : 1994 Standard in 1994 One more revision, which have changed the standard substantially were introduced in the year 2000 as ISO 9000 : 2000 standard. Composition of ISO 9000 :2000 Standard. ISO 9000 family of standards comprises of 4 standards, details of which are given below. 1. ISO 9000 : Describes fundamentals of Quality Management Systems (QMS)and specifies terminology for QMS. 2. ISO 9001 : Specifies requirements for QMS where an organization needs to demonstrate its ability to provide products that fulfill customer and applicable regulatory requirements and aims to enhance customer satisfaction.. 3. ISO 9004 : Provides guidelines that consider both the effectiveness and efficiency of the QMS. The aim of this standard is improvement of the

performance of the Organization and satisfaction of customers and other interested parties. 4. ISO 19011 : Provides guidance on auditing quality and environmental management systems. Important terms used in ISO 9000 : 2000 * Quality System : The term denotes, the organisational structure, procedures, processes and resources which are required to implement Quality Management. * Quality Management : It is that part of Management function, which encompasses all activities that determine the Quality Policy, Quality Objectives and Quality Responsibilities and implements them through Quality Planning, Quality Control, Quality Assurance and Quality Improvements within the framework of Quality System. * Quality Elements : Are all those activities pertinent to the quality of the product and involving all phases in the life cycle of a product and processes, from initial identification of market needs to final satisfaction of requirements. Salient features of ISO 9000 series. * These standards are user friendly. * They are generic in nature and follow a logical, easily understood format. * These standards can be adopted equally effectively by a small company with 10 people working for it or by a large conglomerate with thousands of employees. * The standards are based on common practices. * These standards can demonstrate to present as well as future customers, the capability of the company to meet their requirements consistently. * Documented policies and procedures which are the main features of ISO 9000 standards, clearly identify all the activities which have an impact on the quality related performance of the organization. * These standards provide for a system designed to make people carry out their functions consistently and in a defined manner. * These standards can eliminate needless problems and miscommunications by providing practical control systems. Advantages of ISO 9000 standards. * Consistency of product quality is assured. * Customers get confidence about the organizations capabilities to satisfy their requirements consistently. * Reduces errors, thereby reducing scrap and rework. * Increases accountability at all levels. * It sets baseline for quality performance of the company. * Focuses on training of all levels and promotes professional development. * Improves quality image of the company. * Reduces time-consuming audits by customers and regulating bodies.

* Raises levels of motivation, cooperation, workmanship and quality awareness of employees. * Improves processes, thereby reducing the costs and throughput time. * Improves cross-functional cooperation leading to effective teamwork. * Gives marketing advantage over competitors. * Helps to get entry into foreign markets. Applicability of the ISO 9000 standard. * ISO 9000 series can be used in two situations 1) Contractual 2) Noncontractual. * Basic aim of the Quality System in both the situations is to strengthen the competitiveness of the company and achieve the intended product quality in a cost effective way. * In contractual situation, purchaser may impose certain Quality System elements. * The company may be involved in both the situations as a purchaser and as a supplier. The principles on which the ISO 9000 series is based. The basic principles behind ISO 9000 series are : 1) Principal factor in the performance of the organization is the quality of its products. 2) There is need to continuously upgrade the products and improve the quality for sustaining satisfactory economic performance. 3) Only adherence to specifications may not guarantee customer satisfaction . 4) A well developed quality management system to compliment the relevant product or service requirement is necessary to ensure customer satisfaction. 5) The quality system of the company is influenced by its objectives, market being served, nature of products, production processes and customer needs and therefore the quality system requirements vary from one organization to another. Steps a company should take to implement ISO 9000 standards and get certification. Assuming that the company is starting from the scratch, step by step logical sequence of the actions to be taken is as follows : 1. Train Top Management on all aspects ISO 9000 and their role in implementing and sustaining the activity. 2.Constitute Quality Committee of senior managers from all the departments. This committee should have the overall responsibility for implementation and sustenance of ISO 9000. 3. Nominate a Quality Coordinator, who will monitor the progress against the plan, manage inter-departmental cooperation and report progress.

4. Nominate, Management Representative, who will be responsible for implementation of Quality System. 5. Train middle management on the aspects of procedure writing, record keeping and functional responsibilities. 6. Formulate the Quality Policy and supporting Quality Objectives and display them. 7. Fix quality related responsibilities of every position and document them. 8. Record existing procedures followed by every functional department, compare these with the requirements of ISO 9000 and change the existing procedures wherever necessary. 9. Incorporate new procedures where none were available. 10.Submit the modified and new procedures to Quality Committee for review and approval. 11.Prepare departmental procedure manuals and supporting record formats. 12.Prepare draft Quality Manual. 13.Constitute following inter-functional committees : a) Change review committee to review and approve changes in the procedures. b) Contract Review Committee to review and accept customer orders. c) Design Review Committee to review designs at prescribed stages of design. d) Management Review Committee to review adequacy of Quality System and compliance to this system in regular operations. e) Vendor Approval Committee, to review capabilities of the vendors to supply material as per requirements. 14.Implement the approved procedures. 15.Train Internal Auditors. 16.Prepare Internal Audit Plan and conduct audits to help in effective implementation of ISO 9000 17.Report non-conformities and take suitable preventive and corrective actions. 18. Request External Auditors for Trial/Preliminary assessment. 19 Take corrective actions on the suggestions of External Auditors. 20.Request for the final audit and get the certification. *** The likely cost for getting ISO 9000 certification. * Costs for ISO 9000 certification can broadly be divided in three categories : 1. Fees of the consultant :- will depend on a) Market standing of consultant b) Extent of consultants involvement. c) Prevailing rates in the country 2. Internal Costs :- These will include : a) Time spent by employees. b) Internal training costs. c) Stationary and other misc. costs d) Computer time e) Additional manpower in certain cases where sufficient technical skills and knowledge is not readily available within the organisation 3. Certifying Agencys fees : These will depend upon : a) Size of the company and complexity of its operations. b) Market standing of the certifying agency. c) Whether preliminary audit is opted for or not. d) Number of days the external auditors spend for adequacy and compliance audits.

Training necessary for implementing ISO 9000. * As participation of all the employees is necessary in successful implementation of ISO 9000 training will have to be imparted to all the levels in every Quality Function * However training effort is distributed in following areas : 1. Training to Top Management. 2. Training to Middle Management 3. Training to operators and staff. 4. Training of Internal Auditors. Role of a Consultant for implementing ISO 9000. * Consultant can substantially reduce the time required to design and implement the Quality System in line with requirements of ISO 9000. * Consultant can quickly identify the gaps between existing procedures and processes and requirements of ISO 9000 and suggest remedial steps. * Reduce trials and errors substantially, thereby reducing the costs of implementation. * Train various levels of employees, internally, thereby reducing external training costs. * He can help in identifying requirements of external auditors and their biases.

2. ISO / TS 16949 : 2002

[Quality management systems Particular requirements for the application of ISO9001 : 2000 for automotive production and relevant service part organizations]. IS0 / TS 16949 : 2002 is technical specification which aligns existing US/German/French and Italian automotive quality system standards with the global automotive industry. ISO / TS 16949 : 2002 specifies the quality system requirements for the design/development, production, installation and servicing of automotive related products. These specifications were written by the International Automotive Task Force (IATF) with membership of major automotive manufacturers from US/Europe and Japan. These specifications are written around the format of ISO 9001 : 2000. In the specification booklet, the boxed text is original ISO 9001 : 2000 text and Automotive sector specific requirements are given outside the box. Example of the way the Standard

is written is given below. Customer specific requirements are provided by the individual subscribing vehicle manufacturer separately.

Example : Clause no. 5.5 Responsibility, authority and communication. 5.5.1 Responsibility and authority Quality management system Requirements

ISO 9001 : 2000, 5.5

Responsibility, authority and communication

5.5.1 Responsibility and authority Top management shall ensure that the responsibilities and authorities are defined and communicated within the organization

5.5.1.1 Responsibility and authority Managers with responsibilities and authorities for corrective actions shall be promptly informed of products or processes which do not conform to requirements. Personnel responsible for product quality shall have authority to stop production to correct quality problems. Production operations across all shifts shall be staffed with personnel in charge of or delegated responsibility for ensuring product quality. --------------- x ------------------These specifications are equivalent to following national Quality System Standards: 1. QS 9000 (US) 2. VDA 6.1 (Germany) 3. AVSQ (Italy) 4. EAQF (France) With introduction of this standard, QS 9000, which was the standard specified by the Big Four of Automotive Industry for their suppliers is now redundant. The key differences between QS 9000 and TS 16949 A) Customer satisfaction : Following additions are made in TS16949:-

1. Determine method for monitoring customer perception as to whether requirements are fully met. 2. Evaluate (Customer satisfaction) data continuously. 3. Demonstrate compliance with customer requirements and efficiency of processes. B) Employee motivation, empowerment and satisfaction: QS- 9000 makes no reference to this aspect. Points added in TS 16949 are: 1. Have a process to motivate employees to achieve quality objectives, to make continual improvements and to create environment to promote innovation. 2. Have a process to measure extent of awareness of relevance and importance of their activities and how they contribute to achievement of quality objectives. 3. ISO 14000. There is an increasing concern throughout the world due to rapidly deteriorating environment due to Greenhouse effect. Rapid industrialization and indiscriminate use of fossil fuel are the main culprits. Industrialization leads to economic growth, which cannot be slowed down and only solution is to have a strict control on polluting processes or to substitute these with better alternatives. Though every Country is passing strict deterrent laws, there is a need for individual organization to voluntarily adopt to processes and procedures which will ensure environment protection. It was realized that rather than every individual organization adapting its own rules, it would be helpful if some generically designed standards were developed in this regard. ISO has taken a lead in this regard by developing a series of International, voluntary environmental management standards, guides and technical reports under identification number ISO 14000. These standards are developed by ISO technical committee 207. There are presently 14 standards and 2 technical reports in this series. ISO 14000 series addresses following aspects of environmental management. Environmental Management System (EMS). Environmental Auditing and Related Investigations (EA & RI ) Environmental Labeling and Declarations (EPE) Life Cycle Assessments (LCA) Terms and Definitions (T & D) Basics on which, ISO 14000 is built. To result in better Environmental Management. To cover Environmental aspects of the products. To be Universally applicable. To be user friendly and promote broad interests of the community. To be cost effective, flexible and generic so that any industry, irrespective of its size and products can easily adopt these standards.

To be suitable for internal and external assessments. To be practical, useful and usable.

Standards belonging to ISO 14000 series are basically divided into two categories; Organization oriented and Product oriented. Organization oriented standards. i) ii) i) ii) v) iii) iv) v) ISO 14001 : 1996 :- Environmental Management Systems Specifications and Guidance for use. ISO 14004 : 1996 :- Environmental Management Systems General Guidelines on Principles, Systems and Supporting Techniques. ISO 14010 : 1996 :- Guidelines for Environmental Auditing General Principles. Iso 14011 : 1996 :- Guidelines for Environmental Auditing Auditing Procedures Auditing Environmental Management System. ISO 14012 : 1996 :- Guidelines for Environmental Auditing Qualification Criteria for Environmental Auditors. ISO 14031 : 1999 :Environmental Management Environmental Performance Evaluation Guidelines. ISO/TR 14032 : 1999 :- Environmental Management Examples of Environmental Performance Evaluation (EPE). ISO/TR 14062 : 1998 :- Information to Assist Forest Organizations in the use of Environmental Management System Standards ISO 14001 and ISO 14004

Product Oriented Standards. i) ii) iii) iv) v) vi) vii) viii) ISO 14020 : 1998 :- Environmental Labels and Declarations General. Principles ISO 14021 : 1999 :- Environmental Labels and Declarations Self-Declared Environmental Claims (Type II Environmental Labeling). ISO 14024 : 1999 :- Environmental Labels and Declarations Type I Environmental Labeling Principles and Procedures. ISO 14040 : 1997 :- Environmental Management Life Cycle Assessment Principles and Framework ISO 14041 : 1998 :- Environmental Management Life Cycle assessment Goals and Scope, Definitions and Analysis. ISO 14042 :2000 :- Environmental Management Life Cycle Assessment Life Cycle Impact Assessment. ISO 14043 : 2000 :- Environmental Management Life Cycle Assessment Life Cycle Interpretation. ISO Guide 64 : 1997 :- Guide for the Inclusion of Environmental aspects in Product Standards.

Environmental Management System (EMS).

EMS is a systematic approach in dealing with the environmental aspects of an organization. It is a Tool that enables the organization of any size or type to control the impact of its activities , products or services on the environment. Requirements for an organizations EMS are specified in ISO 14001 : 1996.

Advantages of an EMS . Assure Customers of commitment to demonstratable environmental management. Conserve input materials and energy. Improve cost control by identifying and eliminating waste and inefficiencies. Satisfy investor criteria and improve access to capital. Obtain insurance at more reasonable costs. Reduce incidents that result in liabilities. Enhance organizations image as a responsible corporate citizen. Meeting vendor certification criteria. Improve organizations public image. Facilitate statutory clearances from Government authorities.

Key Elements of an ISO 14001 EMS. Environmental Policy Clear statement of Organizations policy for the Environment protection and requirements for pursuing this policy through objective, targets and environmental programs. Planning Analysis of organizations processes, products, services and materials/services used w.r.t their impact on the environment. Implementation and Operation Implementation and organization of processes, products and services to control and improve operational activities that are critical from an environmental perspective. Checking and Corrective Action The system verification and correction activities, including the monitoring, measurement and recording of the characteristics and activities that can have a significant impact on the environment. Management Review Review of EMS by organizations top management to ensure its continuing suitability, adequacy and effectiveness. Continuous Improvement The ongoing efforts to improve EMS, which is the key component of the system. It is the last element in the cyclical process of plan, implement, check, review and continually improve.

3.Capability Maturity Model for Software Industry. The biggest challenge for any software company to survive in the fiercely competitive market is to complete every software development project in the allotted time and within the allocated budget. This can be achieved only through a strong process model of software development activities.

Software Engineering Institute (SEI) first developed such a process model in 1991. This model is based on maturity levels of the capabilities of the organization to develop software products. The model is known as Capability Maturity Model (CMM) and can be used for : Software process improvements Software process assessments. Software capability evaluations. The model has 5 levels of maturity which indicate predictability, effectiveness and control of organizations software processess. Except for the first level, it has following structure. Maturity Level

Process Capability

Key Process Areas

Goals for each Process Area

Common features for every Process

Implementation of Process

Establish key Practices

Describe Activities and Infrastructure Each of the above steps is briefly described below. Maturity Level. CMM has five maturity levels and features expected for each level are explained in greater details subsequently. Process Capability. Defines the anticipated range of results that can be accomplished by following a software process. Helps in predicting possible outcome of a Software Project undertaken by the Organization. Key Process Areas. Each Maturity Level has certain key process areas. Each Key Process Area comprises of a set of related activities, which performed in a defined manner helps in achieving goals for establishing process capability of that particular maturity level. Documentation of every Key Process Area should contain : a) Description b) Goals c) Key practices.

Goals. Goals specify the scope, boundaries and intent of each Key Process Area. Common features of Key Processes. Commitment to perform :- This will be manifested in Vision/Mission statement, Policies and Top Management support. Ability to perform :- This will depend on the resource availability, competence of employees, organizational structure and work culture. Activities to be performed :- Should be clarified through documented procedures, role specifications and supported by feed-back mechanisms and prompt corrective actions. Measurement and analysis :- Will be possible through creation of efficient data collection and analysis system and performance evaluation against set targets. Verification of implementation :- To be done through regular reviews at different levels, audits and quality assurance Features of each Levels of Maturity. Level 1 Initial level Does not have environment for developing and monitoring software. Success of the project entirely depends on abilities and effectiveness of the Manager and competence of staff. Project undergoes continuous modifications till it is completed and naturally takes more time for completion and can have substantial cost escalation. Past performance cannot be repeated due to adhoc nature of processes. Level 2 Repeatable (Managed) Level Basic software management controls are installed. Basic Project Management concepts are used by the Manager to track costs and schedules. Projects are performed and managed as per documented plans. Important milestones for Project completion are earmarked and monitored. Minimum process discipline is inn place. Strong customer supplier relationship is established. Projects still have considerable risk of costs and time overruns. Level 3 Defined Level. Software engineering and supporting management processes are put together and documented to make a coherent whole, ensuring stability and repeatability. A software Engineering Process Group (SEPG) is responsible for organizations software activities. Organization-wide training programs are organized to ensure that everyone has required knowledge and skills to accomplish his assigned tasks.

Project software processes are defined to specify readiness criteria, inputs required, standards, procedures, verification mechanism, expected outputs and completion criteria. Quality, costs, schedules and functionality are kept under control

Level 4 Quantitively Managed Level. Quantitative goals are set software products and processes. Organization-wide data base is created to collect and analyze data and evaluate software projects and products against laid down standards. Variation in process performance is controlled within set standards using SPC. Trends in product and process quality can be predicted and controlled within set standards. Level 5 Optimizing Level. Organization has tools to identify weaknesses in software processes and take timely corrective actions. New ideas are encouraged. Cost benefit analysis is done for adopting new technologies. Software process capability is improves continuously. . Key Process areas for each maturity level. Level 1 Nil. Level 2 a) Software configuration management. b) Software quality assurance. c) Software Project tracking and analysis. d) Requirements management. Level 3 a) Peer reviews. b) Inter-group coordination. c) Software Product Engineering. d) Integrated software training program. e) Process focus. Level 4 a) Software Quality Management b) Quantitative Process Management. Level 5 a) Process Change Management. b) Technology Change Management c) Defect prevention.

QUALITY CIRCLES.
It is now an accepted fact that in todays fiercely competitive world, individual efforts, however brilliant, cannot be a substitute for teamwork. Modern organizations have to heavily depend on various types of teams to be effective and efficient. Japan is a pioneer in this team concept and has shown the world how an innovative concept like Quality Circles draws involvement of employees at all levels in solving work related problems and achieve continuous improvement in every area of work. Japanese organizations give a very large credit to this concept for their undisputed world leadership in quality and productivity. What is Quality Circle? Quality Circle is a group of employees, doing similar work, which volunteers to meet on a regular basis to identify and solve work related problems in their own work area and present the solutions to the Management for approval and then implement these solutions. History of Quality Circles. During his visit to Japan in the year 1950, Dr. E.W. Deming first introduced Japanese Industry to Statistical Quality Control (SQC) techniques. Japanese industry realized that only sustained efforts to employ SQC techniques to manufacturing operations would pave the way for revival of Japanese economy, which was devastated during the second world war. In order to popularize SQC, the Japanese Government passed a legislation, which allowed the use of Engineering Standard mark on products to those organizations, which practiced the specified SQC techniques in their operations. In 1954, Japanese Union of Scientists and Engineers (JUSE), invited J.M. Juran, a world renowned expert in the field of Quality, to talk on Quality Management. Juran highlighted the need for looking at every function in the organization as a Quality Function, thus spreading quality across the entire organization. Japanese interpreted this concept even more broadly and felt the need for involvement of every individual in the organization in the quality improvement programs. Dr. Korau Ishikawa, widely considered as father of Quality Circles, saw the potential of significant contribution from the large work-force to quality, productivity and other work related issues. In 1961, JUSE sponsored research work, which combined the theories of behavioral science to quality control concepts. Dr. Ishikawa led this research work. He formed the first Quality Circle in Nippon Telegraph and Cable Company in 1962. The concept caught on like wild fire and engulfed the entire Japanese industry within next few years.

Basic concepts of Quality Circles. Quality circle is company-wide activity based on following concepts : Obtain contribution of everyone to the improvement and development of the Company. Develop respect for each other and build a congenial work place where people can enjoy their work. Give full scope for use and development of human capabilities, which can open infinite possibilities for improved performance of the organization. Human relations related ideals of Quality Circles. Man is neither a mere commodity or a liability but has potential to become an asset for the Company by making his life target to contribute to Companys progress. Every person must strive continuously to improve his work and develop his capabilities. Every person is unique and can contribute in his unique way. There is more pleasure in working as a group rather than as an individual (This concept is known as WA in Japan). Learning from each other can lead to the best and safe way to work. A cheerful work place, where people enjoy their work will ultimately reduce the defect rate and improve productivity.

Recommended Structure for Quality Circle activity. Top Management.

Steering Committee.

Coordinator

Facilitator (A)

Facilitator (B)

Facilitator (C)

QC(A1)

QC(A2)

QC(B1)

QC(B2)

Leader

Members Functions of different levels.

1. Top Management. Visibly demonstrate its understanding, support and faith in Quality Circle activity. Provide adequate budget for QC activity. Institute an award system, which can motivate employees to voluntarily join the circles. Promote healthy competition between circles. Provide time to time inputs to eventually lead the activity towards self sustenance. Attend Management presentations of Quality Circles. Respond to the suggestions/recommendations made by QCs in prompt and positive manner. Monitor the progress of the activity on regular basis. Make QC activity review a mandatory point for the regular Management reviews.

2. Steering Committee. This committee comprises of senior managers with executive powers and will have following functions to perform towards Quality Circle activity. Give full support to the activity in their respective areas. Develop working methodology and overall framework for QC activity. Establish program objectives and requirement of resources. Provide policy guidelines and directions. Nominate coordinator and facilitators. Attend Management presentations of QCs Obtain feedback from the facilitator and act on his recommendations. Decide on the rewards to QCs, based on their performance. Continuously monitor the QC activity.

3. Coordinator. Coordinator is a person appointed by the steering committee, who will coordinate the QC activity throughout the organization so that the activity runs in a smooth, effective and self-sustaining manner. He will have following functions to perform. Registering all the Quality Circles in the organization. Liasoning with facilitators for regular and timely meetings of the QCs and Management presentations. Convening the steering committee meetings and circulate the minutes. Organizing all documentation and publication of QC cases. Giving all the assistance required by QCs. Publishing news letter on QC activity. Preparing training material and organizing training of facilitators and leaders

Keeping track of QC activity outside the organization and disseminating the relevant information within the organization Creating awareness of QC activity at grass roots level in order to motivate employees at all levels to join the activity. Organizing conventions on QCs.

4. Facilitator. He is a senior officer of the department nominated by the Steering Committee to carry out following functions, which will help and consolidate the Quality Circle activities in his department. Attending the Quality Circle meetings at least for a brief time. Giving guidance to Circles for conducting the meetings as per laid down system and ensuring that proper records are maintained of each meeting. Arranging for the necessary training to Circle members with the help of the Coordinator. Providing the necessary facilities and resources to the Circles. Arranging for any external help required by the Circles. Resolving the problems faced by the Circles. Acting as a link between Circles and the Management. Collection and dissemination of information, publications, literature etc. related to Quality Circle activity. Arranging periodic get-togethers of the Circle members with participation of Management personnel. Cultivating and promoting participative culture within his department.

5. Leader . A person chosen by the Circle members from amongst themselves. Leader can change by rotation. During starting phase of a Circle, a supervisor can be the Leader but eventually, any member can be nominated as a Leader by the Circle members. Functions of the Leader are: Convening and conducting the Circle meetings as per the laid down schedule. Maintaining all the documentation related to the Circle activities. Arranging for the necessary training of the Circle members with the help of Facilitator. Ensure involvement of every member. Setting goals and reviewing progress during each meeting. Drawing an action plan and delegate responsibilities to the Circle members. Encouraging a consensus approach in problem solving. Get external help as and when required with the help oh Facilitator. Prepare for Management presentations.

6. Members. Members are the basic and most important element of Quality Circles. They are mostly drawn from the work area where the Quality Circle is formed and continue to be members of the Circle as long as they are the part of that work area. Their functions are: Be regular and punctual for the Quality Circle meetings. Get conversant with various statistical tools recommended for problem solving. Identify problems in the work area and put these forth for consideration in the Circle meeting. Contribute ideas for problem solving. Cooperate with other members and the leader to form a cohesive team. Take part in Management presentations.

Training. Training for Quality Circle activity covers following aspects: 1. Bringing in the awareness about What is Quality Circle Activity? and How it can be beneficial to every participating individual as well as to the organization? This is necessary to overcome initial resistance to the new idea and prepare the the employees to voluntarily accept the change. 2. Prepare every person involved in the Quality Circle activity to play his role effectively. People are to be trained for specific roles and the specific training to be given to each level is given below. Training for Members. i) ii) iii) iv) v) vi) Introduction to Quality Circle activity and its benefits to the individual and to the organization. Basic Statistical Quality Control tools e.g. 7 tools Problem solving tools e.g. 7 step breakthrough sequence. Brainstorming. Record keeping and reporting. Presentation skills.

Training for Leaders. i) ii) iii) iv) v) vi) vii) Quality Circle principles and its working. Effective communication. Leadership. Motivation. Art of conducting meetings. Goal setting and follow-up. Collection, analysis and presentation of data.

viii) ix)

Making effective presentation. Team building.

Training for Facilitator. i) ii) iii) iv) v) vi) Quality Circles its genesis, concept and philosophy. Roles of Facilitator and Leader. Group dynamics. Conflict resolution. Proactive Management. Likely problems in Quality Circle activity and their solutions.

Training for Coordinator and Top Management. i) ii) iii) Role of Top Management in Quality Circle activity. Empowering people. Appraisal and reward systems.

Management Presentation. This is the most vital part of the Quality Circle activity as it gives an opportunity to the Circle members to present the work they have done in identifying the problem in their work area and the systematic efforts they have put in to analyze the problem and find a solution for the same. As the Circle members get an opportunity to interact with the Top Management and get their approval for implementing the solution and also appreciation for their efforts, it acts as a strong motivating factor and helps in keeping the employee morale high. The presentations are done in a structured manner with the help of charts, graphs and using sophisticated audio/visual tools. Quality Circle activity cannot take roots and eventually sustain without the keen interest and continued support of the Top Management. Presence of Top Management at the Management presentations is the visible indication of this interest and support. Implementation of Quality Circle activity. Introduction of Quality Circle activity must be preceded by implementation of Total Quality Control (TQC), which is discussed in greater details in a subsequent chapter. This will help in developing management attitudes and practices oriented towards quality of processes and creating a culture conducive to defect free operations. Creation of a Flexible workforce and implementation of Quality Circle activity can become complementary activities. Once a suitable atmosphere is created within the organization, following steps can be taken for implementation of Quality Circle activity. Discussions between different layers of organizational structure wiz Top Management Departmental Heads, Departmental Heads Sectional heads, Sectional Heads Supervisors, Supervisors Operators about the concept of Quality Circle and its relevance to the organization.

Training programs for different levels to explain the basics of Quality Circles and the role each level is expected to play in the activity. Gathering the feedback from participants on their views and inhibitions. Clearing the doubts in everybodys minds and make them receptive to the concept. Form a Steering Committee to give overall direction to the effort. Select a coordinator and entrust him with the job of working out a methodology, which is suitable for the organization for starting the activity. Select the departments where the pilot Quality Circles can be started. Select the Facilitator and Leaders and train them to play their role effectively. Motivate the members to join voluntarily and train them for their role. Start the meetings of pilot Circles and closely follow their work. Arrange for the Management presentations for the pilot Quality Circles and give wide publicity for their achievements. Extend the activity to few more departments. Keep on encouraging areas where the activity is not started by showing them the achievements of the working Quality Circles in other areas and the benefits and recognition they have received.

Demings universal 14 points 1. Create constancy of purpose with a plan 2. Adopt new philosophy of Quality 3. Cease dependence on mass inspection. 4. End the practice of choosing suppliers solely on price. 5. Identify problems and work continuously to improve the system. 6. Adopt modern methods of training on job. 7. Change the focus from quantity to quality. 8. Drive out fear. 9. Break down barriers between departments. 10. Ask for productivity only after providing the means. 11. eliminate work standards that prescribe numerical quotas. 12. Remove berries to pride of workmanship 13. Institute vigorous education and retraining. 14. Create Top Management support for all above points. Debuffering: In normal working conditions, there is a natural tendency to play safe and create buffers so that in case of any mishap the smooth running of the processes is not hampered. Areas in which such buffers are created are typically: 1. Material. 2. Machine capacities. 3. Human resources 4. Tolerances.

Every buffer however adds to costs. Buffers also reduce alertness of operating people as they know that even if something is neglected, available buffers can tide over the situations. This can bring down the efficiency of the people. Material buffers are the worst type as the extra material can hide defects, occupy costly space, hinder smooth movement, spoil upkeep of shop and lead to mix-ups. The solution is to gradually reduce the buffers in every area and operate only on JIT principles. Debuffering is thus a powerful tool in the practice of TQM. Basic concepts of Demings 14 Principles: 1. Visionary Leadership :- Ability of Management to establish, practice and lead a long term vision. Top Management will have to follow coaching style, practice empowerment and manage change. 2. Internal and External cooperation :- Important points are: a) Supplier partnership b) System orientation c) Working through teams d) Building trust 3. Learning :- Development of skills, abilities and knowledge and encouraging self learning. 4. Process Management :- Focussing process rather than the end result. Emphasising How rather than How much. Thrust should be on prevention of defects through extensive use of SPC. 5. Continuous improvement in all areas of operation. 6. Employee Fulfilment by encouraging pride in ones job. 7. Customer satisfaction. Total Quality Management (TQM) What is TQM? :1. TQM is an organizational philosophy. 2. TQM is anything and everything that the organization has to do to attain and retain no. 1 position in the market. 3. TQM is managing change effectively. 4. TQM is a continuous journey and not a destination. 5. TQM is Quality of Management and not only Management of Quality. 6. TQM means different things to different people. Two essentials of TQM :1. TQM is a coherent philosophical position that emphasizes core values. 2. TQM is a distinctive set of interventions, structures, systems, work practices to support core values. TQM interventions :1. Explicit understanding and measurement of customer requirements. 2. Creation of supplier partnership. 3. Use of cross functional/self managed teams. 4. Use of scientific methods to monitor and enhance performance. 5. Use of process management to enhance team effectiveness.

Assumptions of TQM strategy :1. Costs of poor quality are far greater than costs of developing processes that ensure quality. 2. Theory Y works with support of proper tools. 3. Organization is a system of highly interdependent parts which must cooperate. 4. TQM is essentially a Top Management responsibility. Definition of TQM :_ TQM is a strategic integrated Management philosophy based on the concept of ever improving customer satisfaction through process management and involvement of all the stake holders. Building blocks of TQM :_ 1. Emphasis on process rather than product. 2. Quality focus even on minor activities. 3. Measurement of key performance parameters. 4. Efficient use of technologies. 5. Continuous improvement. 6. Team work 7. Customer and competitor driven decisions. 8. Building trust. 9. Management by facts. 10. Benchmarking 11. Encouraging and managing change. 12. Compensating for weaknesses. 13. Effective communication. 14. 100% customer orientation.