CHAPTER 7

QUALITY MANAGEMENT and CONTROL

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Introduction
 This chapter introduces you to the concept and nature of quality and quality management.

Total quality management (quality in every

Total quality management (quality in every

Organization Personnel Equipment

aspect of an organization)
aspect of an organization)

Purchasing Process Information

& Control Management
Inventory

Documents Occurrence
& Assessment
Management
Records

Process Customer Facilities

Improvement Service &
Safety

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4.1. Meaning and nature of quality
 Quality refers to the ability of a product or service to consistently meet or exceed
specifications developed (qualified) based on customer requirements or expectations.
 Different customers will have different requirements, so a working definition of quality is
customer-dependent.
 From the above, one way to think about quality is the degree to which performance of a
product or service meets or exceeds customer expectations.
 The difference between these two, that is Performance – Expectations, is of great interest.
If these two measures are equal, the difference is zero, and expectations have been met.
 Customer expectations can be broken down into a number of categories, or dimensions,
that customers use to judge the quality of a product or service.
 As coining a universal definition for quality is difficult, Garvin, in his book, pinpointed
five approaches to define quality:
i. Transcendent: I cannot define it, but I can see, feel, or taste it.
ii. Product based: Quality is a combination of dimensions that can be quantified or characterized.
iii. User based: Quality is a customer’s preference or expectation.
iv. Manufacturing based: Quality is a conformance to specifications or requirements.
v. Value based: Quality is in terms of benefits and costs.

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Product quality is often judged on eight dimensions:
 Performance —main characteristics of the product.
 Aesthetics —appearance, feel, smell, taste.
 Special features —extra characteristics.
 Conformance —how well a product corresponds to design specifications.
 Reliability —dependable performance.
 Durability —ability to perform over time.
 Perceived quality —indirect evaluation of quality (e.g., reputation).
 Serviceability —handling of complaints or repairs.
Service Quality:
 The dimensions of product quality don’t adequately describe service quality. Instead,
service quality is often described using the following dimensions:
 Convenience —the availability and accessibility of the service.
 Reliability —the ability to perform a service dependably, consistently, and accurately.
 Responsiveness —the willingness of service providers to help customers in unusual
situations and to deal with problems.
 Time —the speed with which service is delivered.
 Assurance —the knowledge exhibited by personnel who come into contact with a
customer and their ability to convey trust and confidence.
 Courtesy —the way customers are treated by employees who come into contact with them.
 Tangibles —the physical appearance of facilities, equipment, personnel, and
communication materials.
 Consistency —The ability to provide the same level of good quality repeatedly 4
 Assessing Service Quality
 A widely used tool for assessing service quality is SERVQUAL, an instrument designed to
obtain feedback on an organization’s ability to provide quality service to customers.
 It is measured on five service dimensions that influence customers’ perceptions of service
quality: tangibles, reliability, responsiveness, assurance, and empathy.

Determinants of Quality:
 The degree to which a product or a service successfully satisfies its intended purpose has
four primary determinants:
1. Design.
2. How well the product or service conforms to the design.
3. Ease of use.
4. Service after delivery.

The Gurus who considered as founders of modern quality management

(Schewhart, Deming, Juran, Crosby , etc.)

Quality Awards (Baldrige award, European quality award, the Deming price)

Quality Certificate (ISO)

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Benefits of Good Quality
Business organizations with good or excellent quality typically benefit in a variety of
ways:
 enhanced reputation for quality,
 the ability to command premium prices,
 Increased market share,
 greater customer loyalty,
 lower liability costs, and
 fewer production or service problems,
 fewer complaints from customers.

Consequences of Poor Quality

Some of the major areas affected by quality are:
 Loss of business.
 Liability.
 Productivity.
 Costs.
Cost of Quality
 Appraisal costs: Costs of activities designed to ensure quality or detect defects.
 Prevention costs: Costs of preventing defects from occurrence.
 Failure (internal and external) costs: Costs caused by defects.
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4.2. Overview of Total Quality Management (TQM)
 A primary role of management is to lead an organization in its daily operation and to
maintain it as a viable entity into the future. Quality has become an important factor in
both of these objectives.
 It implies that each and every aspect of an organization, in totality, works to achieve to
render quality to ensure that customer requirements are met; thus customer satisfaction
(total quality management).
Total quality management: is a philosophy that involves everyone in an organization in a
continual effort to improve quality and achieve customer satisfaction.
 It is the quest for quality in an organization (organizational excellence).
 It is the integration of all functions and processes within an organization in order to
achieve continuous improvement of the quality of goods and services. The goal is
customer satisfaction.
The Basic Concepts of TQM
i. Customer focus (Customer Satisfaction)
ii. Leadership
iii. Employee Involvement and Empowerment
iv. Continuous Process Improvement
v. Competitive benchmarking
vi. Supplier Partnership
vii. Performance Measures (use of quality tools)
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 TQM

Principles & Tools &

Practices Techniques

Leadership Quantitative Non-quantitative

Customer
satisfaction SPC ISO 9000

Acceptance
Employee Sampling ISO 14000
improvement

Reliability Benchmarking
Continuous
improvement
Experimental design Total productive
maintenance

Supplier
partnership Management tools
FMEA

Performance
measures QFD Concurrent
engineering

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4.3. Continuous Improvement (problem – solving)

Process improvement
Map the process Analyse the process Redesign the process

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Ways of improving quality
 Plan-Do-Study-Act Cycle (PDSA): Also called the Deming Wheel after originator;
Circular, never ending problem solving process.
(in Japanese case, this ongoing process
of unending improvement is Kaizen)
•Define and analyse •Revise plan
problem •Develop detailed
•Identify root cause action plan
•Plan for action •Implement plan
Plan Do

•Review deviations Act Check •Confirm outcomes

•Take corrective action against action plan
•Standardize solution •Identify
• Define next measure deviations/issues

 Seven Tools of Quality Control: Tools typically taught to problem solving teams
1. Cause-and-Effect Diagrams 2. Flowcharts
3. Checklists 4. Control Charts
5. Scatter Diagrams 6. Pareto Analysis
7. Histograms
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 Quality Function Deployment: Used to translate customer preferences to design
and then to production.
 Six Sigma (6σ): A business process for improving quality, saving time, reducing costs,
and increasing customer satisfaction.
 It is a set of techniques and tools for process improvement to reduce the occurrence of
defects, so as to achieve and sustain business success.
 The process is to define, measure, analyze, improve, and control (DMAIC).

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4.4. Quality Specification
 Quality specification depends on: Transcendent, Product based, User based,
Manufacturing based or Value based.
Product quality specification is often judged on eight dimensions:
 Performance —main characteristics of the product.
 Aesthetics —appearance, feel, smell, taste.
 Special features —extra characteristics.
 Conformance —how well a product corresponds to design specifications.
 Reliability —dependable performance.
 Durability —ability to perform over time.
 Perceived quality —indirect evaluation of quality (e.g., reputation).
 Serviceability —handling of complaints or repairs.
Service Quality: service quality is often described using the following dimensions:
 Convenience —the availability and accessibility of the service.
 Reliability —the ability to perform a service dependably, consistently, and accurately.
 Responsiveness —the willingness of service providers to help customers in unusual situations and to
deal with problems.
 Time —the speed with which service is delivered.
 Assurance —the knowledge exhibited by personnel who come into contact with a customer and their
ability to convey trust and confidence.
 Courtesy —the way customers are treated by employees who come into contact with them.
 Tangibles —the physical appearance of facilities, equipment, personnel, and communication
materials.
 Consistency —The ability to provide the same level of good quality repeatedly
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4.5. Statistical Quality Control
Quality control: is a process that measures output relative to a standard and takes
corrective action when output does not meet standards.
 The purpose of quality control is to assure that processes are performing in an acceptable
manner (It is part of quality management focused on fulfilling quality requirements).
 Quality assurance that relies primarily on inspection of lots (batches) of previously
produced items is referred to as acceptance sampling. Quality control efforts that occur
during production are referred to as statistical process control.
Approaches to Quality Assurance

 Inspection is an appraisal activity that compares goods or services to a standard.

 Inspection before and after production often involves acceptance sampling procedures;
monitoring during the production process is referred to as process control.

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 The purpose of quality control is to assure that processes are performing in an acceptable
manner (It is part of quality management focused on fulfilling quality requirements).

Where to Inspect in the Process

 Many operations have numerous possible inspection points. Because each inspection adds
to the cost of the product or service, it is important to restrict inspection efforts to the
points where they can do the most good.
 In manufacturing, some of the typical inspection points are:
1. Raw materials and purchased parts.
2. Finished products
3. Before a costly operation.
4. Before an irreversible process.
5. Before a covering process.

 As already explained, Quality control is concerned with the quality of conformance of a

process: Does the output of a process conform to the intent of design?
 Statistical process control (SPC) is used to evaluate process output to decide if a process
is “in control” or if corrective action is needed.
 SPC monitors standards, makes measurements, and takes corrective action (for Process
variability) as a product or service is being produced.
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 Samples of process outputs are examined for process variability; if they are within
acceptable limits, the process is permitted to continue; this is considered as a chance or
random variation, which is natural or inherent process variations in process output.
 If they fall outside certain specific ranges, the process is stopped and, typically, the
assignable cause located and removed; this is nonrandom variation, also referred to as
assignable variation, which calls for corrective action.
 The quality control process for corrective action follows the following steps:
 Define: The first step is to define in sufficient detail what is to be controlled.
 Measure: Only those characteristics that can be counted or measured are candidates for control.
 Compare: There must be a standard of comparison that can be used to evaluate the
measurements.
 Evaluate. Management must establish a definition of out of control (i.e., the nonrandom
variability which needs a control).
 Correct. When a process is judged out of control, corrective action must be taken.
 Monitor results. To ensure that corrective action is effective, the output of a process must be
monitored for a sufficient period of time to verify that the problem has been eliminated.

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4.6. Process Control Charts: the voice of the process
There are seven tools of quality control.
1. Cause-and-Effect Diagrams: A schematic technique used to discover possible locations
of quality problems.
2. Flowcharts: Used to graphically present and document the detailed steps in a process.
3. Checklists: Simple data check-off sheet designed to identify type of quality problems at
each work station; per shift, per machine, per operator.
4. Scatter Diagrams: A graph that shows how two variables are related to one another; data
can be used in a regression analysis to establish equation for the relationship.
5. Pareto Analysis: Often called the 80-20 rule is a technique that displays the degree of
importance for each element; the principle is that quality problems are the result of only a
few problems (e.g. 80% of the problems caused by 20%).
6. Histograms: A chart that shows the frequency distribution of observed values of a variable
to show whether the distribution is symmetrical (normal) or skewed.
7. Control Charts: Important tool used in Statistical Process Control to distinguish between
random variability and nonrandom variability. It has The Upper control limit (UCL) and
lower control limit (LCL) to show when process is in or out of control.

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Control Charts

Types of Control charts

 Control charts for variables are used to monitor characteristics that can be measured,
e.g. length, weight, diameter, time, etc.
 Control charts for attributes are used to monitor characteristics that have discrete values
and can be counted, e.g. number/proportion of defective, of broken eggs in a box, etc.

Control charts for Variables:

 Mean (x-bar) charts: used to monitor the central tendency (the average value observed)
over time
 Range (R) charts: Tracks the spread (dispersion) of the distribution over time (estimates
the observed variation)
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Constructing mean (x-bar) Charts
 It is based on a normal distribution.
Formula:

Example: A quality control inspector at the Cocoa soft drink company has taken five (5)
samples, each with four observations (n=4) of the length of time for glue to dry. All sample
values are in minutes. If it is known from past experience that the standard deviation of the
process is .02 minutes, use the data below to develop control charts with limits of 3 (three-
sigma or z = 3) for means of future times.
Sample
1 2 3 4 5
i 12.11 12.15 12.09 12.12 12.09
Observation ii 12.10 12.12 12.09 12.10 12.14
iii 12.11 12.10 12.11 12.08 12.13
iv 12.08 12.11 12.15 12.10 12.12
Sample means 12.10 12.12 12.11 12.10 12.12
(X-bar)
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

Factor for x-Chart Factors for R-Chart

Sample Size
(n) A2 D3 D4
2 1.88 0.00 3.27
3 1.02 0.00 2.57
4 0.73 0.00 2.28
5 0.58 0.00 2.11
6 0.48 0.00 2.00
7 0.42 0.08 1.9
8 0.37 0.14 1.86
2
9 0.34 0.18 1.82
10 0.31 0.22 1.78
11 0.29 0.26 1.74
12 0.27 0.28 1.72
13 0.25 0.31 1.69
14 0.24 0.33 1.67
15 0.22 0.35 1.65
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Control Charts for Attributes: P-Charts & C-Charts
 Control charts for attributes are used when the process characteristic is counted rather than
measured.
Use P-Charts for quality characteristics that are discrete and involve yes/no or
good/bad decisions
 A p -chart is used to monitor the proportion of defective items generated by a process.
 The theoretical basis for p-chart is the binomial distribution
 Conceptually, a p -chart is constructed and used in much the same way as a mean chart.
 Percent of broken eggs in a carton
 Percent of defected glasses in a container
 The center line on a p -chart is the average fraction defective in the population, p. The
standard deviation of the sampling distribution when p is known is:
σp = √p(1-p)
n
Control limits are computed using the formulas:
UCLp = p + z σp
LCLp = p - z σp
Use C-Charts for discrete defects when there can be more than one defect per unit
 When the goal is to control the number of occurrences (e.g., defects) per unit, a c -chart is used.
 Number of flaws in a carpet sample cut from a production run
 Number of complaints per customer at a hotel
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Lecture Note/Mebratu L. 3/20/2023
 The underlying sampling distribution is the Poisson distribution. Use of the Poisson
distribution assumes that defects occur over some continuous region and that the
probability of more than one defect at any particular point is negligible.
 The mean number of defects per unit is c and the standard deviation is √c. For practical
reasons, the normal approximation to the Poisson is used.
 The control limits are:
UCLc = c + z√c
LCLc = c - z√c
Constructing a p – chart:
A Production manager for a tire company has inspected the number of defective tires in five
random samples with 20 tires in each sample. The table below shows the number of defective
tires in each sample of 20 tires. Sam Sample Number Percent
Sample Sample Number of ple size (n) of defective
size (n) defective defective
1 20 3 0.15
1 20 3
2 20 2 0.1
2 20 2 3 20 1 0.05
3 20 1 4 20 2 0.1
4 20 2 5 20 1 0.05
5 20 1 Total 100 9 0.09
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Lecture Note/Mebratu L. 3/20/2023
 p(1-p) (.09)(.91)
σp = = =0.064
n 20

Control limits for ±3σ limits:

UCL  p  z σ p   .09  3(.064)  .282

LCL  p  z σ p   .09  3(.064)  .102  0
Constructing a C-Chart
week Number of
The number of weekly customer complaints are Complaints
monitored in a large hotel. Develop a three sigma 1 3
(±3σ) control limits For a C-Chart using the data table 2 2
On the right. 3 3
#complaints 22 4 1
CL    2.2 5 3
# of samples 10
6 3
7 2
UCL  c  z c  2.2  3 2.2  6.65 8 1
9 3
LCL  c  z c  2.2  3 2.2  2.25  0 10 1
Total 22
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