The document provides an overview of quality management. It discusses key concepts like the evolution of quality management from an emphasis on inspection to quality by design. It also covers dimensions of quality for products and services, relationships between quality, cost and productivity, and quality tools like Quality Function Deployment (QFD) and the House of Quality (HOQ). Additionally, it discusses quality systems, ISO 9000 standards, and the Six Sigma concept which aims for near zero defect levels.

1. Quality Management
By
Asim Sagheer

2. Contents
• Introduction to Quality
• Evolution Of Quality Management
• Dimensions of Quality Management
• Relationship between Quality, Cost & Productivity
• Quality Function Deployment (QFD) & House Of
Quality (HOQ)
• Quality System
• ISO 9000
• Six Sigma Concept

3. Quality
• Quality refers to the ability of a product or
service to consistently meet or exceed
customer expectations.

4. Evolution Of Quality Management
• Before Industrial Revolution- Skilled craftsmen
performed all the stages of production, pride
of workmanship and reputation was
associated with the product.
• Division of labor accompanied industrial
revolution, now each worker was responsible
for only a small portion of each product.
• Frederic Wilson Taylor give emphasis to
inspection.

5. • In 1924, Bell Telephone Laboratories statistical
control charts that could be used to monitor
production.
• World War II created increase in emphasis on
quality control. The US Army used Statistical
Sampling Techniques.
• American Society for Quality Control was formed.
• 1950’s – Quality movement evolved into quality
assurance (emphasis on product design &
incoming raw material, greater involvement of
upper management)

6. • 1960’s- The concept of “zero defects” . (Motivation of
employees, expectation of perfection from each
employee)
• 1970’s- A global impact on quality. OPEC (Organization
of petroleum Exporting Countries) increased the fuel
costs. Japanese companies were producing fuel
efficient automobiles and hence they captured a good
amount of American markets.
• Therefore America spent most of the late 1970’s and
1980’s trying to improve the quality of their goods at
lower prices.

7. Dimensions of Quality Management
• Customer expectations can be broken down
into number of categories, or dimensions, that
customers use to judge the quality of a
product or service.
• The dimensions used for goods are somewhat
different than those used for services.
• Product Quality Dimensions.
• Service Quality Dimensions.

8. Product Quality Dimensions
• Performance- main characteristics of the product
or service.
• Aesthetics- appearance, feel, smell, taste.
• Special features- extra characteristics.
• Conformance-how well a product or service
corresponds to design specifications.
• Reliability- consistency of performance.
• Durability- the useful life of the product or
service.

9. • Perceived quality- indirect evaluation of
quality (eg. reputation).
• Serviceability-handling of companies or
repairs.

10. Service Quality Dimensions
• Tangibles- the physical appearance of facilities,
equipment, personnel, and communication
materials.
• Convenience- the availability and accessibility of
service.
• Reliability- the ability to perform a service
dependably, consistently, and accurately.
• Responsiveness- willingness of service providers
to help customers in unusual situations and to
deal with problems.

11. • Time- the speed with which service is
delivered.
• Assurance- the knowledge exhibited by
personnel who come into contact with a
customer and their ability to convey trust and
confidence.
• Courtesy- the way customers are treated by
employees who come into contact with them.

12. Relationship between Quality,
Cost & Productivity

13. • Many people think that quality costs money and adversely
effects profits. But these costs are the costs of doing it wrong
first time. Quality in the long run results in increased
profitability.
• For example if we design the product right first time , build it
right first time - we save all the costs of redesign , rework,
scrap, resetting, repair, warranty work etc.

14. Traditional Thinking

15. Paradigm Shift

16. Quality ,Price and Profit
 If the organization does not offer high quality
product or service , it will soon go out of
business .
 But just having high quality will not be
enough , because your competitors will also
have the high quality.
 To win , the organizations will have to offer
high quality at a lower price than their
competitors.
 Less the cycle time more favorable it is.
Lower
price
High
Quality

17. Quality Function Deployment (QFD) &
House Of Quality (HOQ)
• QFD theory was first defined by Yoji Akao in
1966 and its initial application was at the Kobe
shipyard of Mitsubishi in 1972.
• It consisted of the use of matrix that put
customer demands on the vertical axis and
the methods by which they would be met on
the horizontal axis.

18. HOQ Basic Structure
Relationship between customer
requirements and technical
descriptors

19. Ice Color Milk Fruits
Ice Gola  
Ice Cream   
Ice Cream
Sunday
   
Customer Demands (What’s)
Technical Demands (How’s)

20. Technical Descriptors (HOWs)
Material Selection Manufacturing Process
Secondary
Reasonable Cost
Aerodynamic Look
Nice Finish
Corrosion resistant
Light Weight
Strength
Durable
ADDING RELATIONSHIP MATRIX TO THE HOUSE OF QUALITY
+9 Strong
+3 Medium
+1 Weak`
Relationship between customer
requirements and technical
descriptors WHATs Vs. HOWs.

21. Technical Descriptors (HOWs)
Material Selection Manufacturing Process
Secondary
Reasonable Cost
Aerodynamic Look
Nice Finish
Corrosion resistant
Light Weight
Strength
Durable
ADDING INTERRELATIONSHIP MATRIX TO THE HOUSE OF QUALITY
+9 Strong Positive
+3 Positive
-9 Strong Negative
-3 Negative
Relationship between customer
requirements and technical
descriptors WHATs Vs. HOWs.
+9 Strong +3 Medium
+1 Weak

22. Technical Descriptors (HOWs)
Material Selection Manufacturing Process
Secondary
Reasonable Cost
Aerodynamic Look
Nice Finish
Corrosion resistant
Light Weight
Strength
Durable
ADDING CUSTOMER COMPETITIVE ASSESSMENT TO THE HOUSE OF QUALITY
+9 Strong Positive
+3 Positive
-9 Strong Negative
-3 Negative
+9 Strong +3 Medium
+1 Weak
Relationship between customer
requirements and technical
descriptors WHATs Vs. HOWs.

23. Technical Descriptors (HOWs)
Material Selection Manufacturing Process
Secondary
Reasonable Cost
Aerodynamic Look
Nice Finish
Corrosion resistant
Light Weight
Strength
Durable
ADDING TECHNICAL COMPETITIVE ASSESSMENT TO THE HOUSE OF QUALITY
+9 Strong Positive
+3 Positive
-9 Strong Negative
-3 Negative
+9 Strong +3 Medium
+1 Weak
Relationship between customer
requirements and technical
descriptors WHATs Vs. HOWs.

24. Technical Descriptors (HOWs)
Material Selection Manufacturing Process
Secondary
Reasonable Cost
Aerodynamic Look
Nice Finish
Corrosion resistant
Light Weight
Strength
Durable
ADDING PRIORITIZED CUSTOMER REQUIREMENTS TO THE HOUSE OF QUALITY
+9 Strong Positive
+3 Positive
-9 Strong Negative
-3 Negative
+9 Strong +3 Medium
+1 Weak
Relationship between customer
requirements and technical
descriptors WHATs Vs. HOWs.

25. Technical Descriptors (HOWs)
Material Selection Manufacturing Process
Secondary
Reasonable Cost
Aerodynamic Look
Nice Finish
Corrosion resistant
Light Weight
Strength
Durable
ADDING PRIORITIZED CUSTOMER REQUIREMENTS TO THE HOUSE OF QUALITY
+9 Strong Positive
+3 Positive
-9 Strong Negative
-3 Negative
+9 Strong +3 Medium
+1 Weak
Relationship between customer
requirements and technical
descriptors WHATs Vs. HOWs.

26. Benefits of QFD
• Customer Driven
• Reduces Implementation Time
• Promotes Teamwork
• Provides Documentation

27. Quality System
• Quality System or Quality System Management
(QSM) can be seen as a complex system
consisting of all the parts and components of an
organization dealing with the quality of processes
and products.
• ANSI (American National Standards Institutions)
defines QS as “The collective plans , activity and
events that are provided to ensure that a
product, process or service will satisfy given
needs.”

28. NEED OF QUALITY SYSTEM
To fulfill customer
• Needs
• Requirements
• Expectations.

29. OBJECTIVE OF QS
• Customer Focus
• Continual Improvement
• Reduced Waste.
• Integrated technical and managerial process

30. EVOLUTION OF QUALITY SYSTEM
• Evolution of QS started with inspection.
• Process control- it utilized inspection results and
involved a feedback control .
• Quality improvement by prevention- by
determining the sources and causes of errors to
reduce the introduction of these factors.
• Quality by design-it is the most recent phase in
evolution of QS . this aims at designing quality
into product and the manufacturing process.
Ex. Taguchi methods.

31. Benefits of QUALITY SYSTEM
• Improved customer satisfaction,
• Quality of products and services,
• Review of organizational structure,
• Improve internal communication.
• Coordinated actions of employees/workers.
• Assures economical costs of quality.

32. Limitations of Implementing QS
• Short term increase in production cost
• Resistance of staff to change

33. ISO 9000
• International Organization for Standards (IOS)
1946, Composed of representatives from 91
nations.
• It adopted a series of written quality standards in
1987 called the ISO 9000 standards.
• At the end of 1992 European community moved
towards European Free Trade Agreement, quality
management became a key strategic objective.
• IOS adopted ISO prefix. ‘ISO’ means equal.
Organization certified under ISO 9000 are assured
to have equal quality to there peer organization.

34. • The standards today are recognized by over 100 countries
including India and Japan.
• In some foreign markets, company will not buy from non-
certified suppliers. Therefore meeting ISO standards is a
necessity for international competitiveness.
• An audit of organization’s quality management system is
done by a competent agency once in every three or six
months in order for organization to regain accreditation.
• Quality of finished products is not audited but instead the
procedures and methods used in delivering the quality.

35. Six Sigma Concept
0
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Y-Values
Y-Values

36. • If we assume that the process output is
represented by a normal distribution, about
99.73% of output is contained within bounds that
are three standard deviations (3 ) from mean.
These are represented as upper tolerance
limit(UTL) and lower tolerance limits(LTL).
• Therefore the portion of non-
conforming/defective product is about
0.27%(2700ppm).

37. • At least 20,000 wrong drug prescriptions each
year
• More than 15,000 babies accidentally dropped
each year by nurses
• 2000 lost pieces of mail each hour
• 500 incorrect surgical operations each week
What such level of quality really means-
Are we satisfied with this quality??

38. • So for a product to be virtually defect free it
must be designed to tolerance limits that are
significantly more than +-3 from the mean.
• Motorola’s answer to this problem is six sigma
quality i.e, process variability must be so small
that the specification limits are 6 from mean.

40. References
• Production and Operations Management
by K Shridhara Bhat
• Slideshare-Relationship between cost, quality
and productivity