Unit: 1 Introduction to Quality and Quality Management

 Concept of quality:
Quality is a perceptual, conditional, and somewhat subjective attribute and may be
understood differently by different people. The dictionary has many definitions of “quality”. A
short definition that has achieved acceptance is: “Quality is Customer Satisfaction”. “Fitness for
use” is an alternative short definition. Here, customer means anyone who is impacted by the
product or process.
Quality is “a predictable degree of uniformity and dependability, at low cost and suited
to the market”.
Quality is a relative term, generally used with reference to the end-use of a product.
Quality should be aimed at the needs of the consumer, present and future.
According to ISO 8402, quality is “the totality of features and characteristics of a
product or service that bear on its ability to satisfy stated or implied needs”.
Robert A. Broh defined quality as “Quality is the degree of excellence at an acceptable
price and control of variability at an acceptable cost”
According to IBM, “Quality is meeting the requirements of customers, both internal and
external, for defect free products services and business processes.”
Thus, Quality means meeting customer requirements( stated or implied ) through the
totality of a product or service by conforming to a specific standard at a given time at a price
customers can afford and is willing to pay.

 Competitiveness and customers:

Competitiveness refers to the effectiveness of an organization in the marketplace relative to
other organizations that offer similar products or services. Competitiveness measures how
effectively an organization meets the wants and needs of customers relative to its competitors
In other words, competitiveness is a set of capabilities that the operations function can
develop in order to given a company a company a competitive advantage in its market. There
are two broad categories of such capabilities that have a major impact on:
1. Total quality management:
Competiveness marketing capabilities and operations capabilities. By excelling in these
capabilities, a company can become a winner in its market. Marketing influence competitiveness
in following several ways:
a) Identifying consumer wants and or needs: It is a base input in an organization’s
decisions making process which tries to achieve a perfect match between consumer’s
wants and needs and the organization’s goods and/or services.
b) Price and quality: They are key factors in consumer buying decision. The operations
manager must understand how the consumers make trade-off decision between price and
quality.
c) Advertising and promotion: With the help of different tools of advertising and
promotion, organizations can inform potential customers about features of their products
or services, and attract buyers.
2. Operations influences competitiveness in following several ways:
a) Product and service design: It is the process of defining all of the product’s or service’s
characteristics. It can be a key factor in consumer buying decisions. Innovation and the
time-to-market for new products and services are also key factor in consumer buying
decisions.
b) Cost: It affects pricing decisions and profits. Cost-reduction and higher productivity
always result into a competitive cost advantage. A company may outsource a portion of
its operation to achieve lower costs, higher productivity, or better quality.
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 c) Location: Location is a strategic decision which deals with the questions such as ‘where
will facilities be located? Location can be important in terms of cost and convenience for
customers. Location near inputs can result in lower input costs. Location near markets
can result in lower transportation costs and quicker delivery times.
 Understanding and building the quality chains:
Improve Quality

Cost decrease due to fewer defects

lesser rework fewer delays and
better use of men, machine and
material

Improve Productivity

Stay in business

Provide more jobs

Fig : Quality Chain

Quality chain is the series of chain inter-relating different departments within and
outside the organization. It is a continuous process. Quality chain is a continuing improvement
philosophy.
The customer are the valuable assets for any organization. The success of the
organization depends on the satisfied customer of it. The satisfied customer tends to purchase
frequently and more. The customer satisfaction is one of the major criterion for quality
management system. Since, customer satisfaction is subjective, it is hard to measure. Identifying
the customer expectation is the key to satisfy the customer. If we can develop the concept of
series of customer and suppliers in each work in process of the production line or in series, the
ultimate product and service will be prominent. Such customer within the organization can be
named as internal customer. An internal customer is a vital and unavailable factor in the
organization. All function either engineering, order processing, or production has an internal
customer each receive an product or service and in exchange provide a product or service.
In each level of customer there should be a basic question to be asked to satisfy them, they
are: what do they need from me? What do you do within my output? And are there any gaps
between what you need and what you get? The quality management system begins with the
basic need of ensuring that the external customer’s requirements are adequately measured.
Customer satisfaction will result in customer loyalty. The customer loyalty can be sustain only
by maintaining a favorable comparison when compared with competitors.

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 Managing quality:
Quality management is a method for ensuring that all the activities necessary for the
design, development and implementation of a product or service are effective and efficient with
respect to the system and its performance. Quality control, quality assurance and quality
improvement are the three main components of quality management. Quality management
focuses not only on product quality, but also on the means to achieve it. Quality management,
therefore, uses quality assurance and the control of processes as well as products to achieve
more consistent quality.
 Quality improvement can be distinguished from quality control in that quality
improvement refers to purposeful change of a process to improve the reliability of
achieving an outcome.
 Quality control is the ongoing effort to maintain the integrity of a process to maintain
the reliability of achieving an outcome.
 Quality assurance is the planned or systematic action necessary to provide enough
confidence that a product or service will satisfy the given requirements of quality.

 Quality starts with Understanding the needs:

It is obvious that cannot survive without satisfying customer. Satisfaction is a person’s
feelings of pleasure or disappointment resulting from comparing a product’s perceived
performance (or outcome) in relation to his or her expectations.
Satisfaction is the customer’s entire expectation with product, service and associates that
determines his or her deliration of satisfaction. Satisfaction is based upon the customer’s
perception of the experience. This perception is his/her interpretation of the value received
played back against expectations. Interactions with the customer, the promise made to the
customer in there conversations, the customer expectation generated in these conversations, and
the actions we take that are consistent with those expectations combine to produce a declaration
of satisfaction.
Therefore, it is essential to manage these aspects of business in a proactive manner to
excel at customer satisfaction. The organization should always try to meet the external
customer’s needs and as many of their wants as possible. There are a variety of ways in which
we can identify an external customer needs.
 By discussion their needs with them
 By asking for customer feedback Customer
 By analyzing complaints Customer
Your company
 Through staff feedback
 Carrying out market research
 Through customer surveys Your company

Customer-centric model

Today, competition requires not just customer satisfaction but demands customer
delight. It has been found that a delight customer takes six times less effort to retain in
comparisons to a fresh customer. A delighted customer not only helps bring down the cost of
sales but also is the best insurance against competitive moves.

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 Quality in All Function:
As we have seen, quality management impact every aspect of the organization. Every person
and every function is responsible for quality and is affected by poor quality. Quality concept is
not only implemented in the production process but also in the accounting, finance, and
similarly, ISO 9000standards do not apply only to the production process they apply equally to
all departments of the company. TQM requires the close cooperation of different function in
order to be successful. Some of the functions are explain bellows:
1. Marketing: It plays a critical role in the QM process by providing key inputs that make
QM a success. The goal of QM is to satisfy customer needs by producing the exact product
that customers wants. Marketing role is to understand the changing needs and wants of
customers by working closely with them. Marketing needs to accurately pass customer
information along to operations and operations needs to include marketing in any planned
product changes.
2. Finance: It is another major participant In the QM process because of the great cost
consequences of poor quality. Finance services as a baseline for monitoring financial impact
of quality efforts and can be a great motivator. Finance plays a large role in evaluating and
monitoring the financial impact of managing the quality process. This includes costs related
to preventing and eliminating defects, training employees, reviewing new products, and all
other quality efforts.
3. Accounting: Accounting is important in the QM process because of the need for exact
costing. QM efforts cannot be accurately monitored and their financial contributing assessed
if the company does not have accurate costing methods.
4. Engineering: Engineering efforts are critical in QM because of the need to properly
translate customer requirements into specific engineering terms. We depend on engineering
to use general customer requirements in developing technical specification, identifying
specific parts and materials needs, and identifying equipment that should be used.
5. Human resources (HR): HR is critical to the effort to hire employees with skills
necessary to work in a QM environment. That environment includes a high degree of
teamwork, cooperation, dedication, and customer commitment. HR is also faced with
challenges relating to reward and incentive systems.
6. Information systems (IS): information system is highly important in QM because of the
increased need for information accessible to teams throughout the organization. IS should
work closely with a company’s QM development program in order to understand exactly the
type of information system best suited for the firm, including the form of the data, the
summary statistics available, and the frequency of updating.

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 Unit 2 Conceptual Frameworks for Total Quality
Management (TQM)

 Early TQM Frameworks and Concepts

Total Quality Management (TQM), this framework proposes, can be achieved only when the
organization develops the ability to cater to customers' needs, monitor the internal and external
environments on an ongoing basis to obtain and disseminate information needed by empowered
group decision makers, establish and maintain an atmosphere where there is strong vertical and
horizontal communication, collaboration, and cooperation among individuals in internal units,
as well as among individuals in external units, develop and maintain a bond and a “sense of
ownership” among employees; and develop and maintain ongoing training programs.
In the 1980s to the 1990s, a new phase of quality control and management began. This
became known as Total Quality Management (TQM). Having observed Japan’s success of
employing quality issues, western companies started to introduce their own quality initiatives.
TQM, developed as a catchall phrase for the broad spectrum of quality-focused strategies,
programmes and techniques during this period, became the centre of focus for the western
quality movement.
A typical definition of TQM includes phrases such as: customer focus, the involvement
of all employees, continuous improvement and the integration of quality management into the
total organisation. Although the definitions were all similar, there was confusion. It was not
clear what sort of practices, policies, and activities needed to be implemented to fit the TQM
definition.
TQM is an approach for improving quality that involves all areas of the organization,
including sales, engineering manufacturing, and purchasing, and customer satisfaction.
TQM is defined as a management approach that tries to achieve and sustain long-term
organizational success by encouraging employee feedback and participation, satisfying customer
needs and expectations, respecting, societal values and beliefs and obeying government statues
and regulations. Product, process, system, people, and leadership from the five pillars of TQM.
Therefore, TQM is process for managing quality. It is viewed as a continuous way of life and a
philosophy of perpetual improvement in everything we do.

 Deming’s fourteen (14) point

‘Deming’s fourteen points’ is a summary of the quality improvement philosophy developed
and taught by W. Edwards Deming.
1. Create constancy of purpose: create constancy of purpose toward continual
improvement of product and service, with aim to become competitive, stay in business,
and provide jobs.
2. Adopt the new philosophy: Adopt a new philosophy of cooperation (win-win) in which
everybody wins and put it into practice by teaching it to employees, customers and
suppliers.
3. Cease dependence on inspection to achieve quality: Cease dependence on mass
inspection to achieve quality. Instead improve the process and build quality into the
product in the first place. Demand statistical evidence of built-in-quality in both
manufacturing and purchasing functions.

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4. End the practice of awarding business on the basis of price alone: End the practice of
awarding business on the basis of price alone. Instead, minimize total cost in the long
run. Move toward a single supplier for any one item, based on a long-term relationship
of loyalty and trust.
5. Continuously improve every process: Improve constantly, and forever, the system of
production, service, and planning. This will improve quality and productivity and thus
constantly decrease costs.
6. Institute training on the job: Institute modern methods of training on the job for all,
including management, to make better use of every employee. New skills are required to
keep up with changes in materials, methods, product and service design, machinery,
techniques, and service.
7. Improve leadership: Adopt and institute leadership for the management of people,
recognizing their different abilities, capabilities, and aspiration. The aim of leadership
should be to help people, machines, and gadgets do a better job. Leadership of
management is in need of overhaul.
8. Drive out fear: drive out fear and build trust by encouraging effective two-way
communication so that everyone can work more effectively and ensure greater
productivity for the company.
9. Breakdown barriers: Breakdown barriers between people in different divisions of the
organization such as R&D, sales, Administration and production. Abolish competition
and build a win-win system of cooperation within the organization. They must work in
terms to tackle problems that may be encountered.
10. Eliminate slogans: Eliminate slogans, exhortations (i.e. trying hard to persuade
somebody to do something), and targets asking for zero defects or new levels of
productivity. Such exhortations only create adversarial relationships, because most of the
cause of low quality and low productivity belong to the system and thus lie beyond the
power of the workforce.
11. Eliminate arbitrary numerical targets: Eliminate work standards that prescribe
numerical quotas for the workforce and numerical goals for people in the management.
Substitute these with aids and helpful supervision and use statistical methods for
continual improvement of quality and productivity.
12. Encourage pride in work: Remove barriers that rob people of joy in their work. This
will mean abolishing the annual rating or merits system that ranks people and creates
competition and conflict.
13. Institute educational programs: Institute vigorous programs of education and
encourage self-improvement. What an organization needs is not just good people; it
needs people who improve with education. A workforce rooted in knowledge will
always enable an organization to be competitive.
14. Top management’s commitment: Create a structure in the top management whose
main task will be to push these 13 points constantly and take action on order to
accomplish the transformation. Put everybody in the company to work to accomplish the
transformation. The transformation is everybody’s job.

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 Juran’s ten (10) steps
1. Build awareness of need and opportunity for improvement:-
Realize that all processes are improvable. Taking an example of mistakes published a newspaper
they made the previous day, Juran say that they should:
 Survey the staff, asking them why the mistakes were made; reasons; mistake-causing
steps aren't
 repeated;
 Keep track of the number of mistakes being made, to make sure they are decreasing.
Now we have just created a quality improvement program
2. Set goals for improvement :- Juran’s formula for results is
 Establish specific goals to be reached.
 Establish plans for reaching the goals.
 Assign clear responsibility for meeting the goals.
 Base the rewards on results achieved.
3. Organize to reach your goals.
 Establish quality council
 Identify problems
 Select projects
 Appoint teams
 Designate facilitators
4. Provide training.
Any company, which has been actively engaged in moving towards TQM in the past few years,
knows how important education and training are. The concepts, methods and tools for modern
quality management are new for most members of the company -- managers, professionals and
workforce. The investment in education and training is high, but the rewards are great.
5. Carry out projects to solve problems.
Large improvements are usually the result of interdepartmental or even cross-functional quality
improvement teams. These teams tackle the chronic problems that have been in the way of
company progress for a long time. These are the vital few problems that create the
breakthroughs in quality by reducing waste and improving customer satisfaction dramatically.
6. Report progress
Importance here is on the progress expected and the actual progress achieved. Necessary actions
to improve the status can be initiated to reduce the variance. Information on the progress also
provides the management the confidence on the Improvement activity and further support if
required.
7. Give recognition
Recognition is a means of providing morale to both those involved in the improvement activity
and all others in an organization. This is an important activity to be done by the management as
improvements provide a change for betterment resulting in savings to the company and at times,
the improvements are made possible against lot of criticisms. Recognition rejuvenates the spirits
and makes it possible for improvement areas in other spheres.
8. Communicate result.
Lesson learnt during the improvement process requires to be shared to create an awareness of
the approach taken and the possibility to learn and improve further. It also provides an outlook
for people in other areas to the basis for triggering similar improvements in their areas.

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 9. Keep score.
A Company’s goals are achieved step-by-step. Each step taking it nearer to the targeted goals.
Further steps to be taken shall involve an action based on the lesson in the previous steps.
Tracking the progress and measuring it provides the management the leverage to control the
process.
10. Maintain momentum by making annual improvement part of the regular process of
the company.
Actions taken in the above steps shall involve the people and sustaining their involvement in
improvement activity is a must to achieve the long-term organizational goals and to remain
competitive. Juran approach is very many people oriented and it places a strong emphasis upon
teamwork and a project –based approach. Expanding the Quality Planning Roadmap discussed
earlier, it can be seen that Juran concepts are applied to design of Quality Systems in Software
Industry.

 Corsby’s 4 absolute and 14 steps to manage improvement

The essence of Crosby’s teachings is contained in what he calls the “four absolutes of quality”.
 The definition: quality is conformance to requirements, not goodness.
 The system: prevention, not appraisal.
 The performance standard: Zero defects.
 The measurement: the price of non-conformance to requirements not quality indices.

Based on these premises, he developed a 14-step methodology.

Crosby’s 14 steps:
1. Management commitment: To clarify the management’s stand on quality.
2. Quality improvement team: To run the quality improvement program.
3. Quality measurement team: to display current and potential non-conformance
problems in the manner that permits objective evaluation and corrective action.
4. Cost of quality: to define the ingredients of the cost of quality, and explain its use as a
management tool.
5. Quality awareness: to provide a method of raising personal concern among the
personnel in the company towards the conformance of the product and service, and the
reputation of the company on the issue of quality.
6. Corrective action: to provide a systematic method of resolving the problems identified
through actions taken previously.
7. Zero defects planning: to examine the various activities that must be conducted in
preparation for formally launching the zero defects program.
8. Supervisor training: to define the type of training those supervisors need in order to
actively carry out their roles with regard to the quality improvement programmer.
9. Zero defect day:to create an event that will let all employees realize, through a personal
experience, that there has been a change.
10. Goal setting:to turn pledges and commitments into action by encouraging individuals to
establish improvement goals for themselves and their groups.
11. Error cause removal: to give individual employees a method of communicating to the
management, the situations that make it difficult for employees to meet the pledge to
improve.
12. Recognition:to appreciate those who participate.
13. Quality council: to bring together professionals in the domain of quality for planned
communication on a regular basis with the workforce and management alike.
14. Do it over again: to emphasize the quality improvement programmed never ends.

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 Feigenbaun’s approach to total quality control
Armand V. Feigenbaum, a General Electric quality control engineer proposed the theory
of Total Quality control. Feigebaum defines "Quality Control as an effective system for
cordinating the quality maintaince and quality improvement efforts of the various groups in an
organization so as to enable production at the most economical levels which allow for full
customer satisfaction" According to Feigenbaum, Quality didnt mean giving the best product to
the customer. More important as a tool was control, which focuses on the following
 devising clear and achievable quality stands
 Enhancing existing working condition to reach the desired quality standard.
 Setting new quality standard with an aim to further improve
According to him, Quality must encompasses all the phases in the manufacturing of a
product. This includes design, manufacturing, Quality checks, sales, after sales services and
customer satisfaction when the product is deliver to the customer.
It has been over forty years since Feigenbaum published his book on TQC. His book on TQC
presents 10 attributes that are still critical to organizations today.
1. Quality control must be a company-wide process.
2. Quality is defined by the customer.
3. Quality and cost is a sum, not a difference.
4. Quality requires both individual and team enthusiasm.
5. Quality is a way of managing.
6. Quality and innovation are interdependent.
7. Quality is an ethic.
8. Enhanced quality demands continuous improvement.
9. Quality is the most cost-effective and leastcapital-intensive route to productivity.
10. Quality is implemented with a total systemcon

 Concept on Kaizen’s tools

“Kaizen” refers to a Japanese word which means “improvement” or “change for the better”.
Kaizen is defined as a continuous effort by each and every employee (from the CEO to field
staff) to ensure improvement of all processes and systems of a particular organization . Work for
a Japanese company and you would soon realize how much importance they give to the process
of Kaizen. The process of Kaizen helps Japanese companies to outshine all other competitors by
adhering to certain set policies and rules to eliminate defects and ensure long term superior
quality and eventually customer satisfaction.
Kaizen works on the following basic principle.
“ Change is for good ”.
Kaizen is about taking action to generate suggestions and then implementing these
immediately. Some of the micro-level techniques for implementing Kaizen are mentioned
below:
A. PDCA / PDSA is an iterative, four-stage approach for continually improving processes,
products or services, and for resolving problems. It involves systematically testing possible
solutions, assessing the results, and implementing the ones that are shown to work.
The four phases are:
 Plan: identify and analyze the problem or opportunity, develop hypotheses about what
the issues may be, and decide which one to test.

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  Do: test the potential solution, ideally on a small scale, and measure the results.
 Check/Study: study the result, measure effectiveness, and decide whether the
hypothesis is supported or not.
 Act: if the solution was successful, implement it.
These stages are illustrated in Figure 1, below:

ACT PLAN
Implement the Identify your
best solution problems

DO Test
Potential
CHECK
Solution Stury Results

Fig: The Plan-Do-Check-Act Cycle

B. 5S:
The following list is a combination of many variants of the 5S list found in various publications:
1. SEIRI - SEIRI stands for Sort Out. According to Seiri, employees should sort out and
organize things well. Label the items as “Necessary”, ”Critical”, ”Most Important”, “Not
needed now”, “Useless and so on. Throw what all is useless. Keep aside what all is not
needed at the moment. Items which are critical and most important should be kept at a
safe place.
2. SEITION - Seition means to Organize. Research says that employees waste half of their
precious time searching for items and important documents. Every item should have its
own space and must be kept at its place only.
3. SEISO - The word “SEISO” means shine the workplace. The workplace ought to be
kept clean. De-clutter your workstation. Necessary documents should be kept in proper
folders and files. Use cabinets and drawers to store your items.
4. SEIKETSU-SEIKETSU refers to Standardization. Every organization needs to have
certain standard rules and set policies to ensure superior quality.
5. SHITSUKE or Self Discipline - Employees need to respect organization’s policies and
adhere to rules and regulations. Self discipline is essential. Do not attend office in
casuals. Follow work procedures and do not forget to carry your identity cards to work.
It gives you a sense of pride and respect for the organization.

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 C. 7 WASTES:
Following are the seven wastes, as categorized by Taiichi Ohno:
1. Waste from Over production: Manufacture of products in advance or in excess of
demand wastes money, time and space.
2. Waste of Waiting time: Processes are ineffective and time is wasted when one process
waits to begin while another finishes. Instead, the flow of operations should be smooth
and continuous. According to some estimates, as much as 99 percent of a product's time
in manufacture is actually spent waiting.
3. Transportation waste: Moving a product between manufacturing processes adds no
value, is expensive and can cause damage or product deterioration.
4. Processing waste: Overly elaborate and expensive equipment is wasteful if simpler
machinery would work as well.
5. Inventory waste: Excessive inventory wastes resources through costs of storage and
maintenance.
6. Waste of motion: Resources are wasted when workers have to bend, reach or walk
distances to do their jobs. Workplace ergonomics assessment should be conducted to
design a more efficient environment.
7. Waste for Defects : Inspecting and quarantining inventory takes time and costs money.

D. 7 Old and new Quality tools:

Start your quality journey by mastering these tools, and you'll have a name for them too:
"indispensable."
1. Stratification (Divide and Conquer)
Stratification is a method of dividing data into sub–categories and classify data based on group,
division, class or levels that helps in deriving meaningful information to understand an existing
problem.
The very purpose of Stratification is to divide the data and conquer the meaning full Information
to solve a problem.
 Un–stratified data (An employee reached late to office on following dates)
5-Jan, 12-Jan,13-Jan, 19-Jan, 21-Jan, 26-Jan,27-Jan
 Stratified data: (Same data classified by day of the week )

Days Mon Tue Wed Thu Fri Sat Sun

Frequency - Late in Office 4 2 1 0 0 0 0

Table 1
(Frequency – Late in office day wise)
2. Histogram
Histogram introduced by Karl Pearson is a bar graph representing the frequency distribution on
each bars. The very purpose of Histogram is to study the density of data in any given
distribution and understand the factors or data that repeat more often.
Histogram helps in prioritizing factors and identify which are the areas that needs utmost
attention immediately.

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 Chart 2
(Histogram: Defects day wise)

3. Check sheet (Tally Sheet)

A check sheet can be metrics, structured table or form for collecting data and analyzing
them. When the information collected is quantitative in nature, the check sheet can also be
called as tally sheet .
The very purpose of checklist is to list down the important checkpoints or events in a
tabular/metrics format and keep on updating or marking the status on their occurrence which

helps in understanding the progress, defect patterns and even causes for defect

Table 3

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 (Check Sheet: Defect types with their occurrence on day of the week)

4. Cause-and-effect diagram. (“Fishbone” or Ishikawa diagram)

Cause–and–effect diagram introduced by Kaoru Ishikawa helps in identifying the various causes
(or factors) leading to an effect (or problem) and also helps in deriving meaningful relationship
between them.
The very purpose of this diagram is to identify all root causes behind a problem.
In manufacturing industry, to identify the source of variation the causes are usually grouped into
below major categories:
 People
 Methods
 Machines
 Material
 Measurements
 Environment

Figure 4
(Fishbone Diagram: Missed deadline in manufacturing of product)

5. Pareto chart (80 – 20 Rule)

Pareto chart is named after Vilfredo Pareto . Pareto chart revolves around the concept of 80-20
rule which underlines that in any process, 80% of problem or failure is just caused by 20% of
few major factors which are often referred as Vital Few, whereas remaining 20% of problem or
failure is caused by 80% of many minor factors which are also referred as Trivial Many .
Pareto charts help experts in following ways:
 Distinguish between vital few and trivial many.

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  Displays relative importance of causes of a problem.
 Helps to focus on causes that will have the greatest impact when solved.

Chart 5
(Pareto Chart: Causes for defects in supplied items)
6. Scatter diagram
Scatter diagram or scatter plot is basically a statistical tool that depicts dependent variables on Y
– Axis and Independent Variable on X – axis plotted as dots on their common intersection
points. Joining these dots can highlight any existing relationship among these variables or an
equation in format Y = F(X) + C , where is C is an arbitrary constant.

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 Figure 6.1
(Scatter Diagram: Types of correlation in Scatter Plot)

7. Control Chart (Shewhart Chart)

Control chart is also called as Shewhart Chart named after Walter A. Shewhart is basically a
statistical chart which helps in determining if an industrial process is within control and capable
to meet the customer defined specification limits.
The very purpose of control chart is to determine if the process is stable and capable within
current conditions.
Control chart helps in predicting process performance, understand the various production
patterns and study how a process changes or shifts from normally specified control limits over a
period of time.

Figure 7.1
(Process Control Chart)

E. 5 WHYS:
It is the practice of asking “why” many times to get beyond the symptoms and
uncover the root cause (or causes) of a problem.
Here is a simple example:
1. Why did the ink-jet label system stop printing? The head clogged with ink.
2. Why did the head clog with ink? The compressed air supply had moisture in it.
3. Why did the compressed air supply have moisture in it? The desiccant media was
saturated.
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 4. Why was the desiccant media saturated? The desiccant was nit changed prior to
expiration.
5. Why was the desiccant not changed prior to expiration? A change procedure does not
exist for the compressed air desiccant.
Galley (2008) and Gano (2007) argue persuasively that problems rarely have only one
cause and that assuming a problem has only single root cause can prevent investigators from
finding the best solution. The focus of any type of root cause analysis should be on finding and
fixing the system of causes for the problem rather than finding someone to blame. In other
words, use the 5 Whys rather than the 5 who’s.

F. Value stream mapping

G. Workstation improvement and success stories:

H. SHIGEO SHINGO’S APPROACH:

Dr. Shingo Shigeo (1909- 1990) was perhaps the greatest contributor to modern
manufacturing practices. While he is not as well-known as the others in the field of quality, his
teaching and principles have formed the backbone of efficient engineering practices. In applying
hid experience and expertise in the field of industrial engineering, Dr. Shigeo Shingo was able
to provide a better way of life for both the operators and the corporations. His policies have
gained tremendous popularity because of the benefits received by companies in the
manufacturing sector that implemented his teachings.
The impact of Dr. Shingo Shigeo’s teachings can be classified into three concepts listed
below:
 Just in time (JIT)
 Single minute exchange of dies (SMED)
 Zero quality control
Using his key teachings, many modern day manufacturing companies have realized
substantial profits. The impacts of his teachings are discussed in detail below:
a) ZERO QUALITY CONTROL:
Dr. Shigeo Shingo’s zero quality control (ZQC) technique makes use of the following
engineering principles:
 100 percent inspections done at the source instead of sampling inspections
 Immediate feedback from successive quality checks and self-checks
 Poka-yoke designed manufacturing devices.
The ZQC concepts are based on a theoretically ideal scenario. However, quality
improvements can be made by using these principles and concepts. Dr. Shigeo’s basic idea was
to implement error-proofing devices in the assembly line to eliminate the possibility of defective
operations.
This example reinforced Dr. Shigeo’s theories by illustrating the potential improvements
that could be made possible by implementing principles of ZQC and argued that by using sound
manufacturing and process engineering practices, defects could be removed from processes
without the use of many statistical tools used in most quality control techniques.
Poka-yoke Techniques to correct Defects + Source inspection to prevent Defect = Zero
Quality Control.
This famous equation is the essence of the ZQC concept formulated by the Japanese quality
guru, Dr. Shigeo Shingo. Dr. Shigeo wielded tremendous influence on Japanese quality control
and his contributions to quality improvement revolutionized the Japanese industrial sector and
consequently influenced industries in the west.

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 Poka-yoke relates to stopping processes as soon as a defect occurs, identifying the defect
source and preventing it from happening again so that there will be reduced dependence on
statistical quality inspections and the production process will have “zero defects”.

b) Just In Time (JIT):

The just-in-time manufacturing concept was founded in part due to the contribution of
Dr. Shingo Shigeo and Taichii Ohno of Toyota Motor Corporation from 1949 to 1975. During
this period, Dr. Shigeo took charge of industrial engineering and factory improvement training
at Toyota Motor Corporation. This is commonly referred to as JIT or the Toyota production
system.
“A philosophy of manufacturing based on planned elimination of all waste and
continuous improvement of productivity. It encompass the successful execution of all
manufacturing activities required to produce a final product, from design engineering to delivery
and including all stages of conversion from raw material inward. The primary elements include
having only the required inventory when needed; to improve quality to zero defects; to reduce
lead time by reducing setup times, queue lengths and lot sizes; to incrementally revise the
operations themselves; and to accomplish these things at minimum cost.”
The primary objective in implementing JIT to a production facility was to obtain a
competitive advantage and bring about increased productivity by eliminating the following
wastes:
 Waste from overproduction
 Excess transportation
 Waiting time
 Processing waste
 Wasted motion waste from production defects.
By applying these simple concepts, a company can realize monetary savings. The use of
statistical process control; thus, helps ensure that the outcome of production is consistently met
with desired results.

c) SINGLE MINUTE EXCHANGE OF DIES (SMED)

SMED was developed in order to reduce the fixed costs associated with the setup and
changeover of dies. The basic elements driving the SMED concept is to reduce the setup time of
dies, which directly results in smaller batch sizes for parts. A smaller batch size translates into
lower costs associated with work in process inventory storage. This concept is especially
beneficial as it allows the manufacturing system to quickly adjust to engineering design changes
with very little costs.
Dr. Shigeo Shingo’s approach when developing the SMED concept was to isolate and
identify the setup time as two entities- internal setup time and external setup time and external
setup time. According to him, a simple approach to achieving a quick setup and changeover of
the dies entailed the following setups:
 Separating internal and external setups as they existed.
 Converting internal to external setup.
 Streamling all aspects of the setup operations.
Many companies that conduct stamping operations in a manufacturing environment
have found success by implementing this principle into their existing improvement program.

I. GARVIN’S EIGHT (8) QUALITY DIMENSIONS:

There are eight such dimensions of quality. These are:
1. Performance: It involves the various operating characteristics of the product. For
a television set, for example, these characteristics will be the quality of the picture, sound
and longevity of the picture tube.

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 2. Features: These are characteristics that are supplemental to the basic operating
characteristics. In an automobile, for example, a stereo CD player would be an additional
feature.
3. Reliability: Reliability of a product is the degree of dependability and trustworthiness
of the benefit of the product for a long period of time. It addresses the probability that the
product will work without interruption or breaking down.
4. Conformance: It is the degree to which the product conforms to pre- established
specifications. All quality products are expected to precisely meet the set standards.
5. Durability: It measures the length of time that a product performs before a replacement
becomes necessary. The durability of home appliances such as a washing machine can
range from 10 to 15 years.
6. Serviceability: Serviceability refers to the promptness, courtesy, proficiency and
ease in repair when the product breaks down and is sent for repairs.
7. Aesthetics: Aesthetic aspect of a product is comparatively subjective in nature and
refers to its impact on the human senses such as how it looks, feels, sounds, tastes and so
on, depending upon the type of product. Automobile companies make sure that in
addition to functional quality, the automobiles are also artistically attractive.
8. Perceived quality: An equally important dimension of quality is the perception of the
quality of the product in the mind of the consumer. Honda cars, Sony Walkman and
Rolex watches are perceived to be high quality items by the consumers.

J. Ishikawa (FISHBONE) Diagram:

The fishbone diagram or Ishikawa diagram is a cause-and-effect diagram that helps
managers to track down the reasons for imperfections, variations, defects, or failures.
The diagram looks just like a fish’s skeleton with the problem at its head and the causes for the
problem feeding into the spine. Once all the causes that underlie the problem have been
identified, managers can start looking for solutions to ensure that the problem doesn’t become a
recurring one.
It can also be used in product development. Having a problem-solving product will
ensure that your new development will be popular – provided people care about the problem
you’re trying to solve. The fishbone diagram strives to pinpoint everything that’s wrong with
current market offerings so that you can develop an innovation that doesn’t have these
problems.

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 People Method Measurement

Missed Deadline

Machine Environment Materials

Fig: Fishbone Diagram Examples

Fishbone diagrams are problem- solving tools commonly used by quality control teams.
Specific causes of problems can be explored through brainstorming. The development of a
fishbone diagram requires the team to think through all the possible causes of poor quality.
Finally, the fishbone diagram is also a great way to look for and prevent quality problems before
they ever arise. Use it to troubleshoot before there is trouble, and you can overcome all or most
of your teething troubles when introducing something new.

 TAGUCHI’S PHILOSOPHY TO QUALITY:

The essence of Taguchi approach is its contribution to excellent quality control in the
manufacturing industries. His concept has developed engineers to see quality as a yard stick in
their design of product and process. The philosophy which based on three fundamental concepts
has greatly caused the better application and development of technology and techniques in many
industries. The three concepts are ( Roy, 1990):
 Quality should be designed into the product and not in its inspection
 To achieve the quality it is best to minimize the deviation from the target and product
shall be designed to be insensitive to the uncontrollable environmental factors
 The cost of quality is measured as a function of deviation from the standard and the
losses should measure the system-wide

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20 By Lalit Narayan Shah
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 Fig: Taguchi Design Procedure
It emphasizes the importance of designing quality control into manufacturing processes.
The Taguchi approach stresses that quality variation is the main enemy of quality engineering
and that every effort should be made to reduce the variation in quality characteristics.
Specifically robust design is identical to parameter design, but a wider sense parameter design is
a subset of robust design. Two major tools used in robust design are (Park, 1996):
 Signaled-to-noise ratio which measures quality with emphasis on variation
 Orthogonal arrays which accommodate many design factors (parameters) simultaneously
The basic approach about the design of experiment consists of four stages to such design
(Lofthouse, 1999 ):
 Planning the experiment
 Designing the experiment
 Conducting the experiment and
 Analyzing the experimental results

 COMMON CAUSES OF TQM FAILURES:

Several firms have experienced considerable problems with the introduction,
development and measurement of quality improvement. Some programmes have never been
initiated and many have encountered common barriers. Although the TQM points appear
obvious and make sense, they are in reality difficult to execute and very time consuming. A
TQM philosophy must be driven throughout the entire organization as it requires major changes
in the way companies operate. The common barriers in the implementation and development of
a TQM programme are:
 Poor planning,
 Lack genuineness of het organization’s commitment,
 Lack of top management support and commitment,
 Resistance of the workforce,
 Lack of proper training,
 Teamwork complacency
 Over-or under reliance on statistical process control (SPC) methods
 Use of an off-the-shelf programme,
 Failure to change the organizational philosophy,
 Lack of resources and lack of effective measurement of quality improvement.

UNIT 3 TQM TOOLS

 Definition of TQM:
Total Quality Management is a management approach that tries to achieve and sustain
long term organizational success by encouraging employee feedback and participation,
satisfying customer needs and expectations, respecting societal values and beliefs, and obeying
governmental statutes and regulations.
Total Quality Management (TQM) refers to management methods used to enhance
quality and productivity in business organizations. TQM is a comprehensive management
approach that works horizontally across an organization, involving all departments and
employees and extending backward and forward to include both suppliers and clients/customers.
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 TQM is only one of many acronyms used to label management systems that focus on
quality. Other acronyms include CQI (continuous quality improvement), SQC (statistical quality
control), QFD (quality function deployment), QIDW (quality in daily work), TQC (total quality
control), etc. Like many of these other systems, TQM provides a framework for implementing
effective quality and productivity initiatives that can increase the profitability and
competitiveness of organizations.

 Benefits of TQM :
Customer satisfaction oriented benefits :
 Improvement in product quality
 Improvement in product design
 Improvement in production flow
 Improvement in employee morale and quality consciousness
 Improvement in product service
 Improvement in market plahce acceptance
Economic improvement oriented benefits :
 Reduction in operating costs
 Reduction in operating losses
 Reduction in field service costs
 Reduction in liability exposure

 BENCHMARKING:
 Concept and Definition of Benchmarking:
“Benchmarking is simply the process of measuring the performance of one's company
against the best in the same or another industry. Benchmarking is not a complex concept but it
should not be taken too lightly. Benchmarking is basically learning from others. It is using the
knowledge and the experience of others to improve the organization. It is analyzing the
performance and noting the strengths and weaknesses of the organization and assessing what
must be done to improve.
Benchmarking can be defined as a process foe improving performance by constantly
identifying, understanding and adapting best practices and processes followed inside and outside
the company and implementing the results.The main emphasis of benchmarking is not on “best
performance” but on improving given business operation or aprocess by exploiting “best
practices”
Thus, benchmarking is the systematic search for best practices, innovative ideas and highly
effective operating procedures. It considers the experiences of others and uses it. It is the search
for the best practices that yield the benchmark performance with a focus on how you can apply
the process to achieve superior results.

 Benefits of Benchmarking:
A benchmarking study results in valuable data can stimulate though provoking discussions with
key stakeholders. The results provide answers to the following key questions for the company:
 How well are we performance compared to other companies?
 What are best practices?
 What improvement opportunities should we focus on?
Establishing operating targets based on the possible industry practices is critical to the success
of any organizations. Benchmarking can benefit organization by:
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  Helping to identify the current position of yours business and determining priorities for
improving environmental performance.
 Allowing comparisons with previous benchmarking profile and against recognized best
practices.
 Encouraging regular monitoring of progress and a program of continuous improvement.
 Increasing the competitiveness of the organization by demonstrating environmental
improvements to customers and shareholders.

 Elements of Benchmarking:
The process of benchmarking contains the following two elements:
1. Measuring performance requires some sort of units of measure. These are called metrics
and are usually and are usually expressed numerically. The numbers achieved by the best
in class benchmarks are the target. An organization seeking improvements then plots its
own performance against the target.
2. Benchmarking requires that managers understand why their performance differs. Bench
markers must develop a through and in-depth knowledge of both their own processes
and process of best in class organization. An understanding of the differences allows
managers to organize their improvement efforts to meet the goals and objectives and
about meeting them by improving processes.

 Reason for Benchmarking:

There are several reasons that benchmarking is becoming more commonly used in industry;
 Benchmarking is a more efficient way to make improvements. Managers can
eliminate trial and error process improvements. Practicing benchmarking focuses on
tailor tailoring existing processes to fit within the organization.
 Benchmarking speeds up organization’s ability to make improvements.
 Compare business practices with those of world class organizations
 Challenge current practices and processes
 Create improved goals and practices for the organization
 Change the perspective of executives and managers.

 OBJECTIVES OF BENCHMARKING
 Becoming competitive
 Improving industry best practices
 Defining customer requirement
 Establishing effective goals and objectives
 Developing the measures of productivity
 ADVANTAGES OF BENCHMARKING
 It helps improve process effectiveness
 Helps in cost reduction
 It provides focus in planning operations
 The sharing of information may create opportunities for innovations
 It assesses the firms existing position and provides a basis for establishing standards
of performance
 Cross comparison are more likely to expose different ways of doing things
 It provides evidence for additional resources

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  Is practitioner led, so gives a sense of ownership
 Facilitates multi-disciplinary team building and networking
 Provides an avenue for change in clinical practices.

 Process of benchmarking:
The logical process flows involved in benchmarking are given below:

1. Planning: Processes that merit such consideration would generally be core activities that
have the potential to give the business in question a competitive edge. Such processes
would generally command a high cost, volume or value. For optimal results of
benchmarking to be reaped, the inputs and outputs need to be redefined: the activities
chosen should be measurable and thereby easily comparable and thus the benchmarking
metrics needs to be arrived.
2. Collection of Information: Information can be broadly classified under the sub texts of
primary data and secondary data. To clarify further, here primary data refers to collection
of data directly from the benchmarked companies itself, while secondary data refers to
information garnered from the press, publications or websites. When engaging in primary
research, the company that is due to undertake the benchmarking process needs to redefine
its data collection methodology.
3. Analysis of data: Once sufficient data is collected, the proper analysis of such information
is of foremost importance. Data analysis, data presentation results projection, classifying
the performance gaps in processes, and identifying the root cause that leads to the creation
of such need to be than carried out.
4. Implementation: This is the stage in the benchmarking process where it becomes
mandatory to walk the talk. This generally means that far-reaching changes need to be
made, so that the performance gap between the ideal and the actual is narrowed and
eliminated wherever possible. A formal action plan that promotes change should ideally be
formulated keeping the organizations culture in mind, so that the resistance that usually
accompanies change is minimized. Ensuring that the managements and staff are fully
committed to the process and that sufficient resources are in place to meet facilitate the
necessary improvements would be critical in making the benchmarking process, a success.
5. Monitoring: As with most projects, in order to reap the maximum benefits of the
benchmarking process a systematic evaluation should be carried out on a regular basis.
Assimilating the required information, evaluating the progress made, re-iterating the
impact of the changes and making any necessary adjustment, are all parts of the
monitoring process.

 PROCESS OF BENCHMARKING

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Organizations that benchmark, adapt the process to best fit their own needs and culture.
Although number of steps in the process may vary from organization to organization, the
following six steps contain the core techniques:
 Decide what to benchmark.
 Understand the current performance of your organization.
 Do proper planning of what, how and when of benchmarking endeavor.
 Study others well (the practices or system you wish to benchmark)
 Gather data and learn from it.
 Use the findings.
It involves the following;
1. Plan: Critical success factors, select a process for benchmarking, document the process,
and develop performance measures
2. Search: Find bench-marking partners
3. Observe: Understand and document the partners’ process, both performance and practice
4. Analyze: Identify gaps in performance and find the root causes for the performance gaps
5. Adapt: Choose “best practice”, adapt to the company’s conditions, and implement changes.

 Failure Models Effect Analysis (FMEA):

Failure mode and effect analysis also known as risk analysis is a preventive measure to
systematically display the causes, effects, and possible actions regarding observed failures.
The purpose of FMEA is to identify the potential failures and the consequent risks designed into
a product or process and take steps to minimize the risk factors and prevent possible damages.
Failure Modes and Effects Analysis (FMEA) is methodology for analyzing potential
reliability problems early in the development cycle where it is easier to take actions to overcome
these issues, thereby enhancing reliability through design. FMEA is used to identify potential
failure modes, determine their effect on the operation of the product, and identify actions to
mitigate the failures. A crucial step is anticipating what might go wrong with a product. While
anticipating every failure mode is not possible, the development team should formulate as
extensive a list of potential failure modes as possible.
It is a group of activities intended to:
“Failure model” means the ways on models, in which something might fall. Failures are any
errors or defects, especially ones that can be detected. The customer and can be potential or
actual.
“Effects analysis” refers to studying the consequence of those failures.

 Benefits of FEMA:
1. Improve product/process reliability and quality.
2. Increase customer satisfaction.
3. Early identification and elimination of potential product/process failure modes.
4. Prioritize product or process deficiencies
5. Capture engineering/organization knowledge
6. Document and track the actions taken to reduce risk
7. Provide focus for improved testing and development.
8. Minimize late changes and associated cost.
9. Act as catalyst for teamwork and idea exchange between functions

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  Quality Function Deployment (QFD):
QFD (quality function deployment) is defined as a method for developing a design
quality aiming at satisfying the consumer and then translating the consumer's demand into
design targets and major quality assurance points to be used throughout the production phase.
QFD is a way to assure the design quality while the product is still in the design stage .
From this definition, QFD can be seen as a process where the consumer’s voice is valued to
carry through the whole process of production and services.
QFD consists of two components which are deployed into the design process: quality
and function. The " quality deployment" component brings the costumer’s voice into the design
process. The "function deployment" component links different organizational functions and
units into to the design-to-manufacturing transition via the formation of design teams.
It is also known as “house of quality, ”Because the drawing often looks like a house.”

House of quality: The house of quality is a voice of customer analysis not a key component
of the quality functional Deployment technique. It starts with the voice of the customer. It is a
tool to translate what the customer wants into products or service that meets the customer wants
in terms of engineering design values by way of creating a relationship matrix.

The house of quality provides

 a requirements planning capacity
 A tool for graphic and integrated thinking
 A means to capture and preserve the engineering thought process
 A means to communicate the thought process to new members of the QFD team.
 A means to inform management regarding inconsistencies between requirements, risks
and needs of the customer.

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  QFD Process:
The QFD process is an orderly sequence of activities for evaluating customer requirements
and developing a product. QFD uses a series of matrixes to organize, analyze, and compare
information about a product, QFD integrates these matrixes and charts into a system (a matrix of
matrixes) to realize customer requirements, functions, quality requirements, parts definitions,
breakthrough methods and manufacturing requirements.
Guinta, (1995) describes the four phases as:
1. Design: the customer helps define product or service requirements. A QFD matrix is
used to translate customer requirements into design requirements. Design requirements
are ways in which the design team is able to satisfy the customer requirements. After
evaluation, the most important design requirements are carried into the next phase.
2. Details: The details and components necessary to product or service are determined.
Details most critical to fulfilling product requirements specified by the customer are
carried into the third phase.
3. Process: The processes needed to produce the parts and components are developed. The
processes most critical to fulfilling customer product requirements are carried into the
fourth and final phase.
4. Production: Production requirements for producing the product are developed. The
production methods will enable the company to produce a high-quality product that
meets customer’s requirements.

 Benefits of QFD:
QFD helps identify new quality technology and job functions to carry out operations. This tool
provides a historic reference to enhance future technology and prevent design errors.
The benefits of QFD are as follows:
 An orderly way of obtaining information and presenting it.
 Shorter product development cycle.
 Considerable reduced start-up costs.
 Reduction In implementation time.
 Fewer engineering changes.
 Reduced change of oversights during the design process.
 An environment of teamwork.
 Conscious decision
 Everything is presented in writing
 Satisfied and delightful customers.

 Taguchi Quality Loss Function:

Taguchi’s Quality Loss Function concept combines cost, target and variation in one
metric with specifications being of secondary importance.
Taguchi has defined quality as the loss imparted to society from the time a product is
shipped. Societal losses include failure to meet customer requirements, failure to meet ideal
performance and harmful side effects.
The Quality Loss Function gives a financial value for customers' increasing
dissatisfaction as the product performance goes below the desired target performance. Equally,
it gives a financial value for increasing costs as product performance goes above the desired
target performance. Determining the target performance is an educated guess, often based on
customer surveys and feedback.
The quality loss function allows financial decisions to be made at the design stage
regarding the cost of achieving the target performance.

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There are three common quality loss functions
1. Nominal - the - best.
2. Smaller - the - better.
3. Larger - the – better

1. NOMINAL – THE – BEST :

Although Taguchi developed so many loss functions, many situations are approximated by the
quadratic function which is called the Nominal –the – best type.
Quadratic Loss
The quadratic function is shown in figure. In this situation, the loss occurs as soon as the
performance characteristic, y, departs from the target τ.
At τ, the loss is Rs. 0.
At LSL (or) USL, the loss is Rs. A.
The quadratic loss function is described by the equation L = k (y -τ) . Where,
L = cost incurred as quality deviates from the target.
y = Performance characteristic
τ = target
k = Quality loss coefficient.
The loss coefficient is determined by setting ∆ = (y – τ), the deviation from the target. When ∆
is the
USL (or) LSL, the loss to the customer of repairing (or) discarding the product is Rs. A.
Thus,
K = A / (y – τ) = A / ∆ .

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 2. SMALLER – THE – BETTER :

The above figure shows the smaller – the – better concepts.

The target value for smaller – the –better is 0. There are no negative values for the performance
characteristic. The radiation leakage from a microwave appliance, the response time for a
computer, pollution from an automobile, out of round for a hole etc. are the performance
characteristics for this concept
3. LARGER – THE – BETTER :

The above figure shows the concept of the Larger – the – better.
In the Larger – the – better concept, the target value is ∞ (infinity), which gives a zero loss .
There are no negative values and the worst case is at y = 0. Actually, larger – the – better is the
reciprocal of smaller – the – better. The performance characteristics in Larger – the -better are
bond strength of adhesives, welding strength etc.

 Total Productive Maintenance: (TPM)

Total Productive Maintenance (TPM) is a maintenance program, which involves a newly
defined concept for maintaining plants and equipment. The goal of the TPM program is to
markedly increase production while, at the same time, increasing employee morale and job
satisfaction. TPM brings maintenance into focus as a necessary and vitally important part of the
business. It is no longer regarded as a non-profit activity. The goal is to hold emergency and
unscheduled maintenance to a minimum. Each letter in the acronym of TPM is subtle yet
critical.

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 Total implies a comprehensive look at all activities that relate to maintenance of
equipment and the impact each has upon availability.
Productive relates to the end goal of the effort i.e. efficient production not merely efficient
maintenance as is often mistakenly assumed.
Maintenance signifies the directional thrust of the program in ensuring reliable processes and
maintaining production.
Analyzing TPM into its three words, we have:
 Total = All including by maintenance and production individuals working together
 Productive = production of goods and services that meet or exceed customer’s
expectations.
 Maintenance = keeping plant and equipment in as good as or better than original
condition at all time.
The overall goals of TPM are:
a) Maintaining and improving equipment capacity.
b) Maintaining equipment for life.
c) Using support from all the areas of the operations.
d) Encouraging input from all the employees.
e) Using teams for continuous improvement.

TPM was introduced to achieve the following objectives:

 Avoid wastage in a quickly changing economic environment.
 Producing goods without reducing product quality.
 Reduce cost.
 Produce target quantity at the earliest possible time.
 Goods send to the customers must be non defective.

Unit 4: Six Sigma

 Introduction to Six Sigma
Six sigma is a letter in a Greek alphabet used to denote the standard deviation of the
processes. A six sigma quality level is set to equate to 3.4 defect per millions opportunities. The
six sigma methodology provides technique and tools to improve the capability and reduce
defect in any process.
The word ‘sigma’ is a statistical term which helps us in knowing, how far a given
process deviates from perfection. Six sigma helps in the control of process variations, which are
responsible for causing defects.
To help this cause, six sigma plays a very critical role as it lays a lot of emphasis on
“Quality must become a part of the culture”
Six Sigma DMAIC
The Six Sigma DMAIC approach is typically used to improve an existing process. DMAIC is an
acronym that stands for:
 Define the problem and desired outcome
 Measure the ability of the process
 Analyze the data and identify the root cause of variations (defects)
 Improve or modify the process so that fewer variations (defects) are produced
 Control the process. Prevent and correct variations before they result in defects

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 Principles of six sigma –
1. The use of pro active thinking to achieve perfection.
2. Top priority should always be service towards customer, stress towards understanding their
needs and expectations and trying to fulfill them.
3. Boundary less collaboration, supported by data and fact driven management.
4. Failure is allowed but through risk management techniques.

 Role/ Implementation/ Functions of six sigma

The main function of the six sigma methodology involves, following the measurement
based strategy for checking process improvement and variation reduction. This is done by using
six sigma sub methodologies: DMAIC (define, measure, analyze, improve, control) and
DMADV (define, measure, analyze, design, verify).
The roles and responsibilities for a successful six sigma quality program can be given a
better understanding by knowing the roles and responsibilities of the following –
1. Quality leader or quality manager (QL/QM) – The main responsibilities of a quality
manager/leader are :-
 Representing the needs of the customers.
 Aiming to improve the operational working of the organization.
 Maintaining high quality standards.
2. Process Owner (PO) – As the name suggests, process owners are the individuals who are
responsible for the working of a certain specific process.
3. Master Black Belt (MBB) –
 Work with the owners of the process and are assigned to a specific area or a function of a
business or an organization.
 Responsible for setting up quality objectives and targets, determining plans, tracking
progress and providing education.
 In good six sigma organizations, process owners and the master black belts work in
combination with each other, sharing information daily.
4. Black Belt (BB) –
 Are referred to as the back – bone of a good six sigma organization.
 Play a key role in six sigma quality initiative.
 Lead quality projects.
 Work full time until the project is completed.
 Capable of completing about four to six projects per year.
 Also coach green belts.
5. Green Belt (GB) –
 Employees trained in six sigma, spend some time completing projects.
 Can spend 10% to 15% of their time anywhere on their projects – depending on the work
load.

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  Features of Six sigma :
In relation to our Business Management System the features and benefits include:-
 The means to convert Vision into Reality
 A powerful and comprehensive approach that can be used time and again to both drive
and monitor progress across all areas of the business
 Fully documented Business Assessment, Planning and Policy (Goal) Deployment
processes
 Packed with business improvement tools, techniques and culture change methodologies
 Simplifies Business Improvement tools such as Lean and Six Sigma
 Provides the means by which organizations can swiftly move ahead of recognised
quality standards to create a competitive advantage and a unique selling proposition
 Identifies 'the 'vital Few' actions - as opposed to the 'trivial many'
 Focuses on ‘end results’ and the means to get there
 Incorporates 20+ years of benchmarking and knowledge sharing with some of the
world’s leading organizations
 Includes academic input and continual research

 Benefits/ Goals of Six Sigma

 Simultaneous improvement in Customer Satisfaction, Employee Motivation &
Satisfaction, Market Share and Business Results
 Step-change and continuous improvement
 Improved business processes
 Hearts and minds of all employees engaged
 Low value-adding activities removed
 Fragmented and piecemeal approaches prevented
 Fire-fighting eliminated
 Day-to-day operations simplified
 Cuts through the ‘fog and noise’ of everyday business
 Easy to understand and implement - in whole or in part
 Frees up Management time to focus on those activities that make a 'real difference'

 DMAIC
1) Define: Define the priority customer to respect the quality. In this phase, those
attributes of the product, service that are considered most important by the customer in
evaluation the quality of a product are identified.
Key questions, key issue and importance tools used in this phase are given bellow:
Key questions
 What are the problems and their scope?
 What is the Benchmark?
 How should resource be allocated?
 Is the voice of the customers captured directly?
Key issues
 What are the role of key members?
 What are the various marlstone of the project?
 What will accomplish?
 What team would be handle the issue?
 Identification of critical success factors.

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Importance tools
 Brainstorming
 Pareto analyzes
 QFD
 Process ,planning etc

2) Measure: Measure the process and defect arising in the product due to the process.

Key questions
 What is the gap between benchmarking and existing status?
 What is the performance capability of the process?
Key issues
 What does customer really want?
 Development of key input process and output measures.
Important tools
 Process mapping
 QFD
 Causes and effect
 Seven Quality control tools, etc.

3) Analysis: Analysis the process to determine the most lightly cause of defects.
Key questions
 What are the success factors?
 What is the performance?
 What are the sources of real various?
 What is the target percentage for improvement
Key Issues
 What the company’s ability to make/deliver it?
Important tools
 Gap analysis and improvement golas
 Testing of hypothesis
 ANOVAs
 Process map analysis

4) Improve: Improve the performance of the process and remove the cause of the defects.
Key Question
 How is variable performance dingiest?
 How is implementation plan?
 How is optimum resources and election?
Key Issue
 What really effect the company ability to make/ deliver it?
 Action plan
 How is performance improvement verity?
 Establishment of operating tall
Important tools
 Testing of hypothesis
 Design of experiment (DOE) techniques
 Conformation of validation studies

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 5) Control: Control to ensure that improvement are maintain overtime.

 Criticism of Six Sigma

 Lean Sigma
 Five Lean Tools and Principles to Integrate into Six Sigma
1. Value Stream Mapping: In the Analyze phase of a DMAIC project, a value stream
map can be created that shows the flow of materials and information, and categorizes
activities into three segments: value enabling, value adding and non value adding. The focus
of this tool is on identifying and eliminating the non-value added activities in each process
step and reducing the wait time between consecutive steps wherever possible. Value
enabling activities, however, cannot be totally eliminated from a system.
2. Takt Time: Takt is a German word that can be roughly translated as “beat.” Takt time
is the rate at which a completed project needs to be finished in order to meet customer
demand. For processes involving cycle times, such as manufacturing or incident
management, the as-is cycle time can be captured in the Measure phase. Then, during the
Analyze phase, the cycle time can be compared with existing service level agreements
(SLAs).
3. Ishikawa (Cause-and-Effect) Diagram and 5 Whys: In the Analyze phase, the
absence of concrete statistical data sometimes can make the identification of a root cause
difficult. In those scenarios, the 5 Whys – asking “Why?” five times – along with a cause-
and-effect diagram, can make the task more manageable. The 5 Why’s tool also can help
uncover the process dynamics and the areas that can be addressed easily.
4. Heijunka (Load Balancing): A Japanese term, Heijunka refers to a system of
production designed to provide a more even and consistent flow of work. This principle can
be incorporated in the Design phase if the root cause analysis during Analyze points to
bottlenecks in the process. Load balancing can be used to introduce a pull in the system
rather than letting it operate on push – thus alleviating the bottlenecks
5. Poka-yoke (Mistake Proofing): A Japanese phrase meaning mistake proofing, poka
yoke can be used to tune process steps and also when designing a new system altogether
with DMADV (Define, Measure, Analyze, Design, Verify). A combination of an Ishikawa
chart and Pareto analysis can be useful in Analyze in listing the major issues plaguing the as-
is process. During the Improve and Design phases, the possibilities for eliminating a major
cause of errors can be explored by improving or redesigning the system to avoid error-
inducing scenarios.

Unit 5: Statistical Process Control

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  Definition: Statistical Process Control
Statistical process control is a way of controlling quality using statistical methods. SPC
is used in controlling and monitoring of the process. Statistical process control ensures that
process runs at its full potential. At its full efficiency process makes sure it manufactures
products with same conformity and wastes minimum possible resources.
This can be applied to any process given the process can measure conforming product
output. Quality data in form of measurements is obtained and data is then plotted on graph.
Control limits are available on graph and you can check data against them.
Some of the instruments used are:-
1. Control Charts
2. Design of experiments
3. Continuous improvement
Example- Used in manufacturing lines
SPC must be used in two phases
1. During the intial establishment of process
2. Regular production use of process
Advantages- One advantage over other methods is early detection of problem rather than
correction of problem. Other can be it reduces likeliness that product will comeback for re work.
It also reduces time required to produce the product.
Hence, this concludes the definition of Statistical Process Control along with its overview.

 Central Tendency
A measure of central tendency is a single value that describes the way in which a group
of data cluster around a central value. To put in other words, it is a way to describe the center of
a data set. There are three measures of central tendency: the mean, the median, and the mode.
The term ‘central tendency’ is rooted in statistics where it is used to refer to the average
or middle range of a distribution. Such errors usually occur because of a natural tendency to
provide “middle-of-the-road” ratings (such as teachers or managers neither wishing to claim
someone has attained mastery or perfection nor willing to assign extremely negative scores) or
because of habituation. It may be also be due to items or questions that tend to cause people to
choose less extreme responses.
Therefore, scales and surveys must be designed such that there is good variation in the
responses. Forcing comparable ratings, that is to rank relatively rather than absolutely, also
helps distinctions be brought out.
 Seven tools of quality
Quality pros have many names for these seven basic tools of quality, first emphasized by
Kaoru Ishikawa, a professor of engineering at Tokyo University and the father of “quality
circles.” Start your quality journey by mastering these tools, and you'll have a name for them
too: "indispensable."
1. Cause-and-effect diagram (also called Ishikawa or fishbone chart): Identifies many possible
causes for an effect or problem and sorts ideas into useful categories.
2. Check sheet: A structured, prepared form for collecting and analyzing data; a generic tool
that can be adapted for a wide variety of purposes.
3. Control charts: Graphs used to study how a process changes over time.

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4. Histogram: The most commonly used graph for showing frequency distributions, or how
often each different value in a set of data occurs.
5. Pareto chart: Shows on a bar graph which factors are more significant.
6. Scatter diagram: Graphs pairs of numerical data, one variable on each axis, to look for a
relationship.
7. Stratification: A technique that separates data gathered from a variety of sources so that
patterns can be seen (some lists replace “stratification” with “flowchart” or “run chart”).

 The Normal Curve

In many natural processes, random variation conforms to a particular probability
distribution known as the normal distribution, which is the most commonly observed probability
distribution. Mathematicians de Mover and Laplace used this distribution in the 1700's. In the
early 1800's, German mathematician and physicist Karl Gauss used it to analyze astronomical
data, and it consequently became known as the Gaussian distribution among the scientific
community.
The shape of the normal distribution resembles that of a bell, so it sometimes is referred
to as the "bell curve", an example of which follows:
The normal distribution can be completely specified by two parameters:
 mean
 standard deviation
If the mean and standard deviation are known, then one essentially knows as much as if
one had access to every point in the data set.
The normal distribution often is used to describe random variables, especially those
having symmetrical, unimodal distributions. In many cases however, the normal distribution is
only a rough approximation of the actual distribution.

 Definition: Control Charts

It is a process control tool to know whether the process is under statistical control or not.
This technique was developed by Walter A. Shewhart at Bell laboratories in 1920s.
These control charts are used to monitor the variance in product/service. The productivity and
quality is increased as the operators and managers will know when the process is getting out of
control.
WHEN TO USE A CONTROL CHART
 When controlling ongoing processes by finding and correcting problems as they occur.
 When predicting the expected range of outcomes from a process.
 When determining whether a process is stable (in statistical control).
 When analyzing patterns of process variation from special causes (non-routine events) or
common causes (built into the process).
 When determining whether your quality improvement project should aim to prevent
specific problems or to make fundamental changes to the process.
Use a control chart to do the following:
 To determine the average amount
 To determine the spread about the average
 To determine if the process is in control (only common cause variation, see Jan 2004 e-
zine on the website)

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  To show the result of improvement efforts

Unit:-6 Quality system standard

 Meaning of ISO
ISO means international standard organization . In business environment , ISO word is
so famous and International organization provides standards to those business organizations’
who fulfill its conditions . It has authority to issue certificate of quality management and quality
environment . There are large numbers of business organization who satisfy the conditions .
ISO (International Organization for Standardization) is the world's largest developer and
publisher of International Standards . This organization has made by participation of all
countries .Its central secretariat is in Geneva , Switzerland .It is NGO which helps to promote
business by providing them solution of quality problems .

 Meaning of ISO 9000

This is the latest version of International organization for standardization which gives to those
organization who satisfy the following condition
1) It fulfills the quality requirements of customers .
2) It fulfills regulatory requirements .
3) Customers satisfaction
4) Continual improvement in quality management .
5) Records should show how and where raw materials and products were processed, to
allow products and problems to be traced to the source.
6) You need to test and document whether the product meets design requirements,
regulatory requirements and user needs.

 Why is ISO 9000 important?

The importance of ISO 9000 is the importance of quality. Many companies offer
products and services, but it is those companies who put out the best products and services
efficiently that succed. With ISO 9000, an organization can identify the root of the problem, and
therefore find a solution. By improving efficiency, profit can be maximized.
As a broad range of companies implement the ISO 9000 standards, a supply chain with
integrity is created. Each company that participates in the process of developing, manufacturing,
and marketing a product knows that it is part of an internationally known, reliable system.
Not only does business recognize the importance of the ISO9000, but the customer
realizes the importance of quality. And because the consumer is most important to a company,
ISO 9000 makes the customer its focus.

 ISO 9000 Principle

The ISO 9000:2015 and ISO 9001:2015 standards are based on seven quality management
principles that senior management can apply for organizational improvement:
1. Customer focus
 Understand the needs of existing and future customers
 Align organizational objectives with customer needs and expectations
 Meet customer requirements
 Measure customer satisfaction

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  Manage customer relationships
 Aim to exceed customer exception
2. Leadership
 Establish a vision and direction for the organization
 Set challenging goals
 Model organizational values
 Establish trust
 Equip and empower employees
 Recognize employee contributions
3. Engagement of people
 Ensure that people’s abilities are used and valued
 Make people accountable
 Enable participation in continual improvement
 Evaluate individual performance
 Enable learning and knowledge sharing
 Enable open discussion of problems, constraints
4. Process approach
 Manage activities as processes
 Measure the capability of activities
 Identify linkages between activities
 Prioritize improvement opportunities
 Deploy resources effectively
5. Improvement
 Improve organizational performance and capabilities
 Align improvement activities
 Empower people to make improvements
 Measure improvement consistently
 Celebrate improvements
6. Evidence-based decision-making
 Ensure the accessibility of accurate and reliable data
 Use appropriate methods to analyze data
 Make decisions based on analysis
 Balance data analysis with practical experience
7. Relationship management
 Identify and select suppliers to manage costs, optimize resources, and create value
 Establish relationships considering both the short and long term
 Share expertise, resources, information, and plans with partners
 Collaborate on improvement and development activities
 Recognize supplier successes

 Benefits of ISO 9000 SERIES

1. Increased Efficiency: The companies have done extensive research on the processes
they are following, how to maximize quality and efficiency before going through the ISO
9000 series. Quality management standards certification process. Once they achieve
certification, the process is established. There are guidelines which can be easily followed
by anyone, making it easy to provide training, transitions and even for trouble shooting
purpose.

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 2. Increased revenue: It has been observed that ISO QMS certified companies have
showed improvements in the field of productivity, financial performance as compared to the
uncertified ones.
3. Employee Revenue: The staffs are more satisfied and motivated once there are defined
roles and responsibilities. Accountability of management, established training procedure and
a well-defined picture of how the roles of the employees affect quality and overall successes
of the company.
4. International Recognition: The international Organization for Standardization (ISO)
is recognized work wide as the authority on quality management.
5. Factual Approach to Decision Making: ISO 9001 QMS standard sets out clear
instructions regarding audits and process reviews. This helps in information gathering and
decision making based on data.
6. Supplier Relationship: ISO certification has been found beneficial regarding supplier
relationships. The documentation and testing procedures helps to ensure the quality of the
raw materials used for production purpose. This also helps in property evaluating a new
supplier before changing suppliers. There is procedure to check consistency with respect to
how and where orders are placed.
7. Documentation: Since the ISO QMS standard requires proper documentation of all
processes, and changes made, errors or discrepancies, it ensures consistency of the
production procedure. The staffs are also more accountable. Documentation also guarantees
that traceable records are available in case of non-compliant products or raw materials.
8. Consistency: Since all processes are documented, there is minimum scope of errors.
Processes staring right from research and development, covering production, shipping are
well documented. Even any small change in the process has to be documents. Even any
small change in the process have to be documented ensuring that the changes are well
planned and implemented in the best possible way to ensure maximum efficiency.
9. Customer satisfaction: Companies can gain confidence of clients easily because the
ISO is a universally acceptance standard. ISO 9001 QMS certification ensures efficiency,
consistency and dedicated quality service by the companies thereby ensuring satisfaction of
the customer.
10. Improvement processes: The ISO 9001 QMS emphasizes on audit processes,
management review and improved processes based on collected data. Based on facts and
using a system of documentation and analysis, improvements are carefully planned and
implemented. This ensures that the best decisions are made for your company.
 Disadvantage of ISO 9000:
Despite the many advantages associated with ISO 9000, however, business owners and
consultants caution companies to research the rigorous certification process before committing
resources to it. Following is a list of potential hurdles for entrepreneurs to study before
committing to an initiative to gain ISO 9000 certification:
 Owners and managers do not have an adequate understanding of the ISO 9000
certification process or of the quality standard themselves: Some business owners have
been known to direct their company’s resources toward ISO 9000 registration, only to find
that their incomplete understanding of the process and its requirements results in wasted
time and efforts.
 Heavy emphasis on documentation: The ISO 9000 certification process relies heavily
on documentation of internal operating procedures in many areas, and as Meyer stated,
“many say ISO’s exacting documentation requirements gobble up time. Indeed, there are
horror stories about companies losing substantial business because a documentation
obsession redirected their priorities.” According to Nation’s Business, small business owners
need to find an appropriate balance between ISO documentation requirements, which are
admittedly “one is ISO 9000’s hallmarks,” and attending to the fundamental business of

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 running a company: “strike a balance among obsessively writing down every employee’s
task, offering for the work, and letting common sense dictate how a task is to be performed.
 Length of the process: Business executives and owners familiar with the ISO 9000
registration process warn that it is a process that takes many months to complete. The 1996
Quality systems Update survey indicated that it took businesses an average of 15 months to
move from the early stages of the process to passage of the final audit, and that processes of
18-20 months or even longer were not that uncommon.
 Funding for establishing the quality system is inadequate: Critics of ISO 9000
contend that achieving certificate can be a very costly process, especially for smaller firms,
indeed, according to a 1996 Quality system update survey, the average cost of ISO
certification for small firms (those registering less than $11 million in annual sales ) was
$71.000

 ISO 9000 Requirements:

1. Management Responsibility:
 The quality policy shall be defined, documented, understood, implemented and
maintained.
 Responsibilities and authorities for all personnel specifying, achieving and
monitoring quality shall be defined.
 In-house verification resources shall be defined, trained and funded.
 A designated management person sees that the Q91 program is implemented and
maintained.
2. Quality System:
 Procedures shall be prepared.
 Procedures shall be implemented.
3. Contract Review:
 Incoming contracts (and purchase orders) shall be reviewed to see whether the
requirements are adequately defined, agree with the bid and can be supplied.
4. Design Control:
 The design project shall be planned.
 Design input parameters shall be defined.
 Design output shall be verified to meet input requirements.
 Design change shall be verified to meet input requirements.
 Design changes shall be controlled.
5. Document control:
 Generation of documents shall be controlled.
 Distribution of documents shall be controlled.
 Changes to documents shall be controlled.
6. Purchasing:
 Potential subcontractor and sub-supplier shall be evaluated for their ability to provide
stated requirements.
 Requirements shall be clearly defined in contracting data.
 Effectiveness of the subcontractor’s quality assurance system shall be assessed.
7. Customer-supplied material:
 Any customer-supplied material shall be protected against loss or damage.
8. Product identification and Traceability:
 The products shall be identified and traceable by item, batch or lot during all stages
of production, delivery and installation.
9. Process Control:
 Production (and installation) process shall be defined and planned.

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  Production shall be carried out under controlled conditions: documented instructions,
in-process controls approval of processes and equipment, and criteria for
workmanship.
 Special processes that cannot be verified after the fact shall be monitored and
controlled throughout the processes.
10. Inspection and testing:
 Incoming materials shall be inspected or verified before use.
 In-process inspection and testing shall be performed.
 Final inspection and testing shall perform prior to release of finished product.
 Records of inspection and test shall be kept.
11. Inspection / measuring / test equipment:
 Equipment used to demonstrate conformance shall be controlled, calibrated and
maintained.
 Identify measurements to be made.
 Identify affected instruments.
 Calibrate instruments ( procedures and status indicators)
 Periodically check calibration.
 Assess measurement validity if found out of calibration.
 Control environmental conditions in metrology lab.
 Measurement uncertainty and equipment capability shall be known.
 Where test hardware or software is used, it shall be checked before use and
rechecked during use.
12. Inspection an d test status:
 Status of inspections and test shall be maintained foe items as they progress through
various processing steps.
 Records shall show who released conforming product.
13. Control of Nonconforming product:
 Nonconforming product shall be controlled to prevent inadvertent use or installation.
 Review and disposition of nonconforming product shall be formalized.
14. Corrective Action:
 Problem causes shall be identified.
 Specific problems and their causes shall be corrected.
 Effectiveness of corrective actions shall be assessed.
15. Handling, storage, packaging and delivery:
 Procedures for handling, storage, packaging and delivery shall be developed and
maintained.
 Handling controls shall prevent damage and deterioration.
 Secure storage shall be provided, product in stock shall be checked for deterioration.
 Packing, preservation and marketing processes shall be controlled.
 Quality of the product after find inspection shall be maintained. This might include
delivery controls.
16. Quality Records:
 Quality records shall be identified, collected, indexed, filed, stored, maintained and
dispositional.
17. Internal Quality Audits:
 Audits shall be planned and performed.
 Results of audits shall be communicated to management.
 Any deficiencies found shall be corrected.
18. Training:
 Training needs shall be identified.
 Training shall be provided.

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  Some tasks may require qualified individuals.
 Records of training shall be maintained.
19. Servicing:
 Servicing activities shall be performed to written procedures.
 Servicing activities shall meet requirements.
20. Statistical Techniques:
 Statistical techniques shall be identified.
 Statistical techniques shall be used to verify acceptability of process capability and product
characteristics.

 ISO 9001:2000
The ISO 9001:2000 – “Quality Management System – Requirements” replaced the 1994
standards ISO 9001, 9002 and 9003 by unifying them. It presents requirements to the
implementation of quality management systems. Its main objective is to achieve customer
satisfaction by meeting their needs and also by providing conforming services/products and
developing continual improvement. A Management system is the set of interrelated or
interacting elements that allow an organization to establish policies and objectives and to
achieve those objectives. The coordinated activities to direct and control an organization with
regard to quality are what we call a Quality Management System (QMS). Actually, it’s the way
things are done to satisfy the customer quality requirements. Remember that, as a generic
standard, the ISO 9001 indicates “what to do” in a quality management system but not “how to
do” it.
Complying with the ISO 9001 standard does not indicate that every product or
service meets the customers' requirements, only that the quality system in use is capable of
meeting them. That is why the organization must continuously assess how satisfied customers
are and constantly improve the processes that produce the products or services. Complying with
the ISO 9001 standard does not indicate that every product or service meets the customers'
requirements, only that the quality system in use is capable of meeting them.
.
 Objectives of ISO 9001:2000
In order to achieve the objectives, the ISO 9001:2000 standard is based on eight principles:
 Customer-focused organization: organizations should understand customers’
current and future needs, and exceed their expectations.
 Leadership: establish a unity of purpose and direction creating an internal
environment where people can contribute to achieve the organization's expected
results.
 Involvement of people: full involvement of employees enables their abilities to be
used for the organization’s benefit.
 Process approach: systematic identification and management of the various
processes employed within an organization and the interactions among these
processes in order to obtain the desired result.
 Systemic approach: managing a system of interrelated processes to a given
objective contributes to efficiency. Integrating and aligning processes leads to better
results.
 Continual improvement: should be a permanent objective of the organization,
leading to improvements in the overall performance.
 Factual approach to decision making: effective decisions are based on the logical
analysis of reliable data and information.
 Mutually beneficial supplier relationships: establishing relationships with
suppliers to enhance the ability of both organizations to create value.

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  Why would we become registered to the ISO 9001-2000 standard?
 To comply with customers who require ISO 9000
 To sell in the EU market
 To improve your quality system
 To minimize repetitive auditing by similar and different customers
 To improve suppliers' performance

 Basic Requirements of the ISO 9001 standard are:

1. Document your processes that affect quality
2. Retain records and data that describe the quality of the product or service.
3. Ensure that your processes produce consistent quality
The sequence toward registration is this:
1. Say what you do
2. Do what you say
3. Prove it with records and audits
4. Improve it continually

 Benefits of ISO 9001:2000 to the organization

ISO 9000 serves as a basis to:
 Achieve better understanding and consistency of all quality practices throughout the
organization
 Ensure continued use of the required quality system year after year
 Improve documentation
 Improve quality awareness
 Strengthen organization/customer confidence and relationships
 Yield cost savings and improve profitability
 Form a foundation and discipline for improvement activities with the quality
management system

 ISO 9001:2008 Quality management systems – Requirements:

This document is the standard that defines a generic set of requirements for organizations
wishing to develop a quality management system. This is the only standard to which an
organization may obtain certification. Because requirements are generic and not specific,
organizations have flexibility in tailoring their quality management systems to fit their business,
culture and risks.
ISO 9001: 2008 is an international standard related to quality management system,
applicable to any organization from all types of business sectors and activities. ISO 9001:2008
is based on eight quality management principles (all fundamental to good business practice).
When fully adopted, these principles can help improve the organizational performance:
 Customer focus: organizations depends on their customers, and therefore need to shape
activities around the fulfillment of market need
 Leadership: is needed to provide unity of purpose and direction
 Involvement of people: creates an environment where people become fully involved in
achieving the organization's objectives
 Process approach: to achieve organizational objectives, resources and activities need to be
managed as processes, with an understanding of how the outputs of one process affects the
inputs of another
 System approach to management: the effectiveness and efficiency of the organization
depends on a systemized approach to work activities

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 Continual improvement: adopting this as a part of everyday culture is a key objective for
an organization
 Fact based decision-making: effective decisions are based on the logical and intuitive
analysis of data and factual information.

 BENEFITS OF ISO 9001:2008

 Involves Top management in the improvement of the Quality management System
Facilitates the organization to become a customer-focused organization.
 Ensures sustained customer satisfaction by producing, delivering services and providing
support functions that meet customer's needs and expectations.
 Increases the effectiveness and efficiency of the organization through continual
improvement in systems and products /services quality.
ISO 9001:2008 is intended to be generic and applicable to all organizations, regardless of
type, size and product category. It is recognized, however, that not all the requirements of
this standard will necessarily be relevant to all organizations. Under certain circumstances,
an organization may consider the exclusion of the application of some requirements of ISO
9001:2008 from its QMS.

 ISO 14000:
In 1993, the International Organization for Standardization (ISO) established Technical
Committee 207 to develop new standards for environmental management. The standards being
developed are known as the ISO 14000 series. This series is a collection of voluntary standards
that have been developed to assist organization in achieving environmental and economic gains
through the implementation of effective environmental management systems. The standards
provide a means of documenting an organization’s ability to manage its environmental affairs.
The overall goal of ISO 14000 is to establish an objective and verifiable system of
environmental management.
The ISO 14000 series is composed of five major components:
1. Environmental Management System.
2. Environmental Auditing.
3. Environmental Performance Evaluation
4. Environmental Labeling.
5. Life Cycle Assessment.

 Benefits of the ISO 14000 standard include:

 Identify cost savings with greater emphasis on resource, waste and energy management
 Develop the corporate image and credibility
 Quantify, monitor and control the impact of operations on the environment, now and in the
future
 Ensure legislative awareness and compliance
 Improve environmental performance of supply chain
 Protect the company, assets, shareholders and directors
 Potentially decrease public liability insurance costs for your organization
 Grow your access to business partners and potential customers

 Meaning of ISO 14000

45 By Lalit Narayan Shah

(TQM)
 ISO 14000 is standard certificate which gives to those business organisation who fulfill
the conditions relating to quality environment . Quality environments means all measure to
protect the environment from pollution .
ISO 14000 is a series of environmental management standards developed and published
by the International Organization for Standardization ( ISO ) for organizations. The ISO 14000
standards provide a guideline or framework for organizations that need to systematize and
improve their environmental management efforts. The ISO 14000 standards are not designed to
aid the enforcement of environmental laws and do not regulate the environmental activities of
organizations. Adherence to these standards is voluntary.
Conditions
1. Company has minimized harmful effect on environment by proper control on waste and
pollution.
2. Achieve improvement in its environment performance by planting the trees and other
projects .
3. ISO 9000 and ISO 14000 are given after taking test of products who apply for same and
ISO takes also some fees for issuing the certificate . There is no guarantee , any quality of
end products but almost all ISO products are high quality .
4. The certificate will be for three years and after this product will again review for giving
certificate .

 Objectives of ISO 9000 and ISO 14000

1. To Increase the goodwill of company
Main objective of getting these standards is to increase the goodwill of company. Customer can
compare the quality of two companies , one is with ISO standard and other is without ISO
standard . Goodwill may be in form of increase in sale or more promotion of product of
company.
2. Control on Quality
After getting ISO standards , company has to control on quality and it is the objective of ISO
standards . ISO standard 9000 controls product's quality and ISO 14000 controls environment
quality .
3. Revolution
After coming , ISO 9000 and ISO , 14000 companies have started to label the product by eco
labeling . Moreover awarness has come in the minds of company after is ISO standard in 1987.

46 By Lalit Narayan Shah

(TQM)