UNIT I

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Dimension
s of
Quality
Dimension
s of
Quality
Dimension
s of
Quality
Dimension
s of
Quality
Dimension
s of
Quality
Evolutio
n in the
concept
of
quality.
Introduction to Competitive Advantage

• Scientific Management (Taylor, 1911): Focus on efficiency and higher

productivity.
• Mass Production: Ford's approach for economies of scale.

Shift in Performance Focus :

• Early 20th Century: Emphasis on cost reduction and efficiency.
• General Motors: Shift to differentiation to address different market segments.

Porter's Strategic Framework (1985)

Two Basic Strategies:
• Cost Leadership: Achieving competitive advantage through lower costs.
• Differentiation: Offering unique products/services to different market
segments.

Japanese Firms' Success Post-War

•Quality as Differentiation: Key factor for the success of Japanese firms.
•Global Market Share: Increased market share at the expense of American firms focused on low
costs.
Stable Economic Conditions: Firms in the West competed on cost or quality.

Performance Emphasis: Focus on refining methods to reduce costs or improve quality.

1960s Breakthrough:
•Japanese firm, like Toyota, achieved reducing costs and improving quality simultaneously.
•Introduced revolutionary management methods like Just in Time (JIT) and Total Quality
Management (TQM).

Dominance of JIT and TQM: These methods shaped management thinking until the late
1980s.

Evolution of Quality:
•Expanded to include not only product quality but also process quality for firms and their
suppliers.
 Statistical techniques, including SPC and designed experiments, along with other
problem-solving tools, are the technical basis for quality control and improvement.

 However, to be used most effectively, these techniques must be implemented

within and be part of a management system that is focused on quality
improvement.

 The management system of an organization must be organized to properly direct

the overall quality improvement philosophy and ensure its deployment in all
aspects of the business.

 The effective management of quality involves successful execution of three

activities:
• quality planning,
Quality Management
Quality Inspection
• A quality inspection involves measuring, examining, testing, or gauging various characteristics
of a product and comparing those results with specified requirements to determine whether
there is a conformity.

• Quality Control (QC) is critical to build and deliver products that meet or exceed customers’
expectations.
• Managing and preserving product quality
throughout the supply chain is dependent on
quality inspections, particularly within
Product Lifecycle Management (PLM)
systems.

• They ensure that every component and

process, from the procurement of basic
materials to the delivery of the finished
product, adheres to pre-established quality
standards.

• These inspections serve as crucial

checkpoints in PLM, ensuring that every
segment of the supply chain conforms to
quality criteria; thus, the occurrence of
defects is reduced and consistency is
maintained.

• Maintaining a state of constant vigilance not

only serves to reduce the likelihood of recalls
and non-compliance but also serves to
strengthen consumer confidence.
 QUALITY PLANNING
• Quality planning is a strategic activity, and it is
just as vital to an organization’s long term
business success as the product development
plan, the financial plan, the marketing plan, and
plans for the utilization of human resources.

• Without a strategic quality plan, an enormous

amount of time, money, and effort will be
wasted by the organization dealing with faulty
designs, manufacturing defects, field failures,
and customer complaints.

• Quality planning involves identifying customers,

both external and those that operate internal to
the business and identifying their needs [this is
sometimes called listening to the voice of the
customer (VOC)].

• Then products or services that meet or exceed

customer expectations must be developed.
• The organization must then determine how these products and services will
be realized.

• Planning for quality improvement on a specific, systematic basis is also a

vital part of this process.
QUALITY ASSURANCE
• The organization must then determine how these products and services will
be realized.

• Planning for quality improvement on a specific, systematic basis is also a

vital part of this process.

• Quality assurance is the set of activities that ensures the quality levels of products and
services are properly maintained and that supplier and customer quality issues are
properly resolved.

• Documentation of the quality system is an important component.

• Quality system documentation involves four components: policy, procedures, work

instructions and specifications, and records.

• Policy generally deals with what is to be done and why, while procedures focus on the
methods and personnel that will implement policy.

• Work instructions and specifications are usually product-, department-, tool-, or

machine-oriented.
QUALITY ASSURANCE…

• Records are also used to track specific units or

batches of product, so that it can be determined
exactly how they were produced.

• Records are often vital in providing data for dealing

with customer complaints, corrective actions, and, if
necessary, product recalls.

• Development, maintenance, and control of

documentation are important quality assurance
functions.

• One example of document control is ensuring that

specifications and work instructions developed for
operating personnel reflect the latest design and
engineering changes.
Quality control
•Quality control and
and improvement involve
the set of activities used to ensure that the
improvement
products and services meet requirements
and are improved on a continuous basis.

•Since variability is often a major source of

poor quality, statistical techniques, including
SPC and designed experiments, are the
major tools of quality control and
improvement.

•Quality improvement is often done on a

project-by-project basis and involves teams
led by personnel with specialized knowledge
of statistical methods and experience in
applying them.

•Projects should be selected so that they

have significant business impact and are
linked with the overall business goals for
quality identified during the planning
process.
Quality Approaches
 Are a set of principles to guide organizational
improvement and quality management. They are
designed to help organizations increase quality and
productivity while reducing costs
are systemic issues that hinder organizational effectiveness and long-
term success. These "diseases" highlight common managerial practices
that Deming believed were detrimental to achieving quality and
continuous improvement
 The
Shewhart
cycle for
Quality
Improveme
nt

The Shewhart Cycle is an

iterative process that
promotes continuous
improvement by planning,
testing, reviewing, and
• The business climate is becoming increasingly more competitive.

• There are multiple options available to the consumer for nearly every product
on the market.

• Companies must stay price competitive to survive.

• The top performing companies set themselves apart from the competition by
listening to the voice of the customer and providing products that meet the
customer’s requirements while maintaining a high level of quality and
dependability.

• These companies measure Cost of Quality and use the information gained to
their advantage.

• The principle of Cost of Quality is similar to a commercial that aired years

ago on television that advertised oil filters.

• The tag line was “Pay Me Now or Pay Me Later”.

• The message was that preventive maintenance of your vehicle could prevent
• An organization can choose to invest in upfront quality costs to reduce or
prevent failures or pay in the end when the defect is eventually discovered
by the customer.

• In too many cases organizations choose the latter.

• Product failures can result in increased warranty costs and possibly even
product recalls.

• The impact to the bottom line can be devastating.

• In addition, there are the hard to measure costs incurred through loss of
brand equity and possible decline in future sales.

• Cost of Quality can have an immense impact on a company’s bottom line,

positive or negative.
What is Cost of Quality (COQ) ?
• Cost of Quality is a methodology used to define and
measure where and what amount of an organization’s
resources are being used for prevention activities and
maintaining product quality as opposed to the costs
resulting from internal and external failures.
• The Cost of Quality can be represented by the sum of
two factors.
• The Cost of Good Quality and the Cost of Poor Quality
equals the Cost of Quality, as represented in the basic
equation below:

• CoQ = CoGQ + CoPQ

• The Cost of Quality includes all costs associated with

the quality of a product from preventive costs intended
to reduce or eliminate failures, cost of process controls
to maintain quality levels and the costs related to
failures both internal and external.
•Why Implement Cost of Quality (COQ)?

• Implementing Cost of Quality (COQ) is essential for understanding and managing the
financial impact of quality-related activities in an organization.

• COQ represents the total cost incurred to ensure that products or services meet quality
standards, as well as the cost of failing to meet those standards.

• By implementing COQ, organizations can identify areas where they are spending
excessively on poor quality and take corrective actions to improve overall efficiency,
customer satisfaction, and profitability.

Implementing COQ provides a comprehensive view of the true costs associated with
quality.

By identifying and managing these costs, organizations can prioritize quality

improvement initiatives that lead to lower overall costs, higher customer satisfaction,
and improved financial performance
Six Sigma is a defined and disciplined business methodology to
increase customer satisfaction and profitability by streamlining
operations, improving quality and eliminating defects in every
organization-wide process.

Six Sigma Methodology is a powerful tool for enhancing the quality of goods
and services.

It's founded on making data-driven decisions to reduce defects and heighten

efficiency.

A key part of this technique involves using a step-by-step method known as

DMAIC, short for Define, Measure, Analyze, Improve, Control, which helps in
eradicating errors systematically.

Exploring these concepts more closely will change your perspective on

managing processes.
By the end of Q2, we will increase our online followers by 15%, measured by our
social media analytics dashboard.
• Process Capability in Six Sigma is a concept that evaluates the
effectiveness of a process in meeting specified targets.

• It involves a comparison between the process output and the desired

benchmark, emphasizing the accuracy of results.

• Utilizing process control options, a Six Sigma Black Belt aims to enhance
the process capability, ensuring it consistently delivers high-quality
outcomes within both short-term and long-term parameters.
• The Process Capability Index (Cpk) is a vital tool in the Six Sigma methodology,
enabling organizations to evaluate their process's ability to produce products
within customer specifications.

• It helps in setting achievable improvement targets and guiding data-driven

decisions to enhance process capability.

• Think of it as the compass that guides you through the turbulent waters of
process quality.

Cpk quantifies how well a process can meet customer requirements.

• The formula for Cpk involves several components, including the Upper
Specification Limit (USL), Lower Specification Limit (LSL), and the standard
deviation of the process.

• Essentially, it provides a standardized metric to measure how closely a process

can perform within its specified limits.

• This metric is crucial in understanding the potential for defects and ensuring that
products or services consistently meet customer demands.
• Knowing these quality levels based on Cpk values allows organizations to gauge
where their processes stand in terms of efficiency and quality.

• It paves the way for realistic goal-setting and targeted improvements.

For instance, if a process has a Cpk value lower than 1, it signifies that the
process is incapable of meeting customer specifications, resulting in a high
probability of defects.

• On the other hand, a Cpk value exceeding 2 indicates an excellent capability,

where the process is consistently producing products or services well within
customer requirements.

Understanding such gradations provides organizations with valuable insights for

prioritizing improvement efforts and allocating resources effectively.

• This knowledge empowers decision-makers to focus on areas that need

immediate attention while also identifying processes that are performing
exceptionally well.
Also called: value stream analysis, lean process mapping

Value stream mapping (VSM) is defined as a lean tool that employs a flowchart
documenting every step in the process.

Many lean practitioners see VSM as a fundamental tool to identify waste, reduce
process cycle times, and implement process improvement.

VSM is a workplace efficiency tool designed to combine material processing steps with
information flow, along with other important related data.

VSM is an essential lean tool for an organization wanting to plan, implement, and
improve while on its lean journey.

VSM helps users create a solid implementation plan that will maximize their available
resources and help ensure that materials and time are used efficiently.