Quality Management

Report

Submitted to:- Submitted By:-

Ms. Priyadarshini Bakshi Vaibhav Agrawal

IILM PG20102410

Section- I

Quality Definition:

‘Quality is the ongoing process of building and sustaining relationships by assessing, anticipating, and

fulfilling stated and implied needs.'

Quality is a much more complicated term than it appears. Dictionary definitions are usually inadequate

in helping a quality professional understand the concept. It seems that every quality expert defines

quality is a somewhat different way. There are a variety of perspectives that can be taken in defining

quality (e.g. customer's perspective, specification-based perspective).

Quality has been an elusive concept in business. Many people think of quality as some level of

superiority or innate excellence; others view it as a lack of manufacturing defects. The official definition

of quality, standardized by the American National Standards Institute (ANSI) and the American Society

for Quality Control (ASQC) in 1978, is "the totality of features and characteristics of a product or service

that bears on its ability to satisfy given needs." This definition implies that we must be able to identify

the features and characteristics of products and services that determine customer satisfaction and form

the basis for measurement and control. The "ability to satisfy given needs" reflects the value of the

product or service to the customer, including the economic value, safety, reliability, and maintainability.

In Manufacturing a state of excellence is being free from defects, deficiencies,and significant variations,

brought about by the strict and consistent adherence to measurable and verifiable standards to

achieve uniformity of output that satisfies specific customer or user requirements. ISO 8402-1986

standard defines quality as "the totality of features and characteristics of a product or service that bears

its ability to satisfy stated or implied needs."

For pharmaceutical products, parameters such as physical and chemical characteristics, Medicinal

effect, toxicity, taste and shelf life may be important. For a food product they will include taste,

nutritional properties, texture, and shelf life and so on.

Why Standards?

Standardization has a major impact on our lives, yet most people know little about the process or about

the standards themselves. They know that camera film marked "ISO 100" is likely to give good results

in a camera with the film speed set at 100. But few understand that the ISO 100 marking on the

package means that the film conforms to a standard established by the International Organization for

Standardization (ISO), an international organization that writes standards.

Standards and Standardization Aims:

A standard is a document which provides, inter alia, requirements, rules, and guidelines, for a process,

product or service. These requirements are sometimes complemented by a description of the process,

products or services.

Standards are the result of a consensus and are approved by a recognized body.

Standards aim at achieving the optimum degree of order in a given context.

The process of formulating, issuing and implementing standards is called standardization.

Following are the primary aims of standardization:

Fitness for purpose

Interchangeability

Variety reduction

Compatibility

Guarding against factors that affect the health and safety of consumers

Environmental protection

Better utilization of resource

Better communication and understanding

Transfer of technology

Removal of trade barrier

How are standards developed today?

Most standards are developed by committees of volunteers, which can include members of industry,

government, and the public. In the U.S., the American National Standards Institute (ANSI) acts as a

"parent" organization, helping to coordinate volunteers and ensure that the development process

emphasizes four main issues: requirements for due process, appeals procedures, the mandatory

consideration of negative votes or comments, and for "committee balance." Balance is achieved when

all parties having an interest in the outcome of a standard have an opportunity to participate and where

no single interest can dominate the outcome.

The International Organization for Standardization (ISO) probably produces the largest number of

International Standards, having issued over 10,000 standards. ISO's work is carried out through some

2,300 technical bodies in which more than 20,000 experts from all over the world participate annually in

the development of ISO standards.

Various Quality Assurance Standards:

ISO 9000

ISO 9000 is a series of quality management systems standards created by the International

Organization for Standardization (ISO), a federation of 132 national standards bodies. The ISO 9000

quality management systems (QMS) standards are not specific to products or services, but apply to the

processes that create them. The standards are generic in nature so that they can be used by

manufacturing and service industries anywhere in the world. First released in 1987 and revised in a

limited manner in 1994, they underwent a major overhaul in 2000.

The most important revised standard, ISO 9001:2000, uses a simple process-based structure, which is

more generic than the old 20-element structure of ISO 9001:1994, is consistent with the plan-do-check

improvement cycle used in the ISO 14000 environmental management systems standards, and adopts

the process management structure widely used in business today. ISO 9001:2000 addresses an

organization’s quality management system requirements, in order to demonstrate its capability to meet

customer requirements, and applies to all generic product categories, such as hardware, software,

processed materials and services.

ISO 9001:2000 registration gives the organization the benefit of an objectively evaluated and enforced

quality management system. It is a tangible expression of a firm’s commitment to quality that is

internationally understood and accepted. ISO 9001:2000 registrations is carried out by registrars,

accredited organizations that review the organization’s quality manual and other documentation to

ensure that they meet the standard, and audit the firm’s processes to ensure that the quality

management system described in the documentation is in place and is effective.

ISO 14000

ISO 14000, released in 1996, is a global series of environmental management systems (EMS)

standards, providing a framework for organizations to demonstrate their commitment to environmental

responsibility.

An EMS enables an organization to control the environmental aspects and impacts of its activities,

products and services by establishing targets and objectives related to identified environmental

management goals. Once implemented, an EMS will improve compliance with legislative and regulatory

requirements, reduce exposure to liability, prevent pollution, reduce waste and create a more positive

public image.

ISO/TS 16949

ISO/TS 16949 is the international automotive quality management systems (QMS) standard, released

in 1999 and revised in 2002 to align with ISO 9001:2000. This standard combines ISO 9001:2000 with

automotive sector-specific requirements from the American QS-9000, German VDA 6.1, French EAQF

and Italian AVSQ quality standards. British and Japanese automakers also contributed to its

development.

ISO/TS 16949 applies to all internal and external suppliers of production or service parts; production

materials; and heat treating, painting, plating or other finishing services directly relating to original

equipment manufacturer (OEM) customers. International automotive suppliers no longer have to satisfy

multiple national automotive quality standards, which were often contradictory and led to redundant

audits.

AS9100

The prime aerospace contractors consider AS9100 a major step in the history of quality management in

the aerospace field. Government agencies, such as the Defense Department and the Federal Aviation

Administration (FAA), also support AS9100, though suppliers still have to meet additional federal

requirements. The major difference is a drop in compliance costs and time for suppliers, due to the

elimination of multiple audited governmental standards. This industry-generated standard also takes

the place of programs the government has dropped. AS9100 is designed to reduce defects in the

supplier chain, continually improve quality and boost customer satisfaction.

CE Marking

The CE Marking is required to sell any product manufactured or distributed under European Union

(EU) New Approach Directives in the European Economic Area (EEA). The EEA consists of the 27-

nation EU. In addition, Switzerland, although part of European Free Trade Association (EFTA), is not

part of EEA. The other 3 non-EU countries in EFTA, Liechtenstein, Iceland and Norway, are members

of the EEA.

TL 9000

TL 9000’s telecommunications sector-specific QSRs are divided into six categories and marked

accordingly: common (C), hardware (H), software (S), services (V), hardware and software (HS), and

hardware and services (HV). There are no services and software (VS) elements. A supplier is only

required to implement the additional elements that fit its scope of operations. Only a hardware and

software company that offers a service must implement all sector-specific requirements.

TL 9000 breaks ground by establishing cost and performance based measurements that measure the

reliability and quality performance of hardware, software and services. These performance

measurement tools are important from the customer’s point of view and include hardware return rates,

system outages, number of problem reports, software update quality, on-time delivery, invoice

accuracy, and the efficiency and level of success of the supplier’s business processes and activities.

Six Sigma

Six Sigma is a statistically oriented approach to process improvement, designed to reach a quality level

of less than 3.4 Defects Per Million Opportunities (DPMO) for Critical-To-Quality (CTQ) characteristics

in a manufacturing or service process.

Achieving this Six Sigma level reduces the cost of defects from 20-30 percent to 1 percent of revenues.

There is a reduced need for testing and inspection, costs go down, cycle time decreases and customer

satisfaction goes up as companies are able to deliver the highest quality product, on time and at the

right price. Six Sigma uses a variety of tools, including Statistical Process Control (SPC), Total Quality

Management (TQM) and Design of Experiments (DOE). It can be coordinated with other major

initiatives and systems, such as new product development, Materials Requirement Planning (MRP) and

Just-In-Time (JIT) Inventory Control.

QUALITY IN MANUFACTURING AND SERVICE SYSTEMS:

Quality assurance refers to the entire system of policies, procedures, and guidelines established by an

organization for the purpose of achieving and maintaining quality. Quality assurance consists of three

principal functions: quality engineering, quality control, and quality management. The aim of quality

engineering is to incorporate quality into the design of products and processes and to predict potential

quality problems prior to delivery of the product. Quality control involves making a series of planned

measurements in order to determine if quality standards are being met. If not, then corrective action

and future preventive action must be taken to achieve and maintain conformance.

Quality management involves the planning, organization, direction, and control of all quality assurance

activities. While many manufacturing firms have quality control departments to provide technical

support, successful businesses have found that quality must be integrated throughout the firm. This

concept of integrating quality throughout all business functions-total quality management-is the theme

of this course.

Quality in Manufacturing Systems:

In manufacturing, quality is an important component of all functions. For example, effective market

research is necessary to determine customer needs and identify functional requirements for product

designers. Product designers must take care to neither over-engineer (resulting in inefficient use of a

firm's resources) nor under-engineer products (resulting in poor quality). Purchasing must ensure that

suppliers meet quality requirements. Production planning and scheduling should not put undue

pressure on manufacturing that will degrade quality. Tool engineering and maintenance are responsible

for ensuring that tools, gages, and equipment are properly maintained. Industrial engineering must

select the appropriate technology that is capable of meeting design requirements and developing

appropriate work methods. Packaging, shipping, and warehousing have the responsibility of ensuring

the condition, availability, and timely delivery of products in transit. Ancillary functions such as finance,

human resources, and legal services support the quality effort by providing realistic budgets, a well-

trained and motivated workforce, and reviews of warranty, safety, and liability issues.

Quality in Services:

The importance of quality in services cannot be underestimated. Service is a "social act which takes

place in direct contact between the customer and representatives of the service company" (Norman,

1984). Technical Assistance Research Programs, Inc., has conducted studies that reveal the following:

• The average company never hears from 96 percent of its unhappy customers. For every complaint

received, the company has 24 customers with problems, 6 of which are serious.

• Of the customers who make a complaint, more than half will do business again with that organization

if their complaint is resolved. If the customer feels that the complaint was resolved quickly, this figure

jumps to 95 percent.

• The average customer who has had a problem will tell 9 or 10 others about it. Customers who have

had complaints resolved satisfactorily will tell only about 5 others. In services, the distinguishing

features that determine quality differ from manufacturing. The most important dimensions of service

quality include:

• Time: How long must a customer wait?

• Timelines: Will a package be delivered by 10:30 the next morning?

• Completeness: Are all items in the order included?

• Courtesy: Do front-line employees greet each customer cheerfully?

• Consistency: Are services delivered in the same fashion for every customer?

• Accessibility and convenience: Is the service easy to obtain?

• Accuracy: Is the service performed right the first time?

• Responsiveness: Can service personnel react quickly and resolve unexpected problems?

Many service organizations such as airlines, banks, and hotels have well developed quality assurance

systems. Most of them, however, are generally based on manufacturing analogies and tend to be more

product-oriented than service-oriented. For example, a typical hotel's quality assurance system is

focused on technical specifications such as properly made-up rooms. However, service organizations

have special requirements that manufacturing systems cannot fulfill. Service organizations must look

beyond product orientation and pay significant attention to customer transactions and employee

behavior. The Ritz-Carlton Hotel Company, a 1992 winner of the Baldrige Award, pays extraordinary

attention to customers and employees.

Service organizations should consider the following points:

The quality characteristics that should be controlled may not be the obvious ones. Customer

perceptions are critical, and it may be difficult to define what the customer wants. For example, speed

of service is an important quality characteristic, yet perceptions of speed may differ significantly among

different service organizations and customers. Marketing and consumer research can play a significant

role. The quality of interaction is a vital factor in every service transaction that involves human contact.

For example, banks have found that the friendliness of tellers is a principal factor in retaining

depositors.

Image is a major factor in shaping customer expectations of a service and in setting standards by which

customers evaluate that service. A breakdown in image can be as harmful as a breakdown in delivery

of the service itself. Top management has the responsibility for shaping and guiding the image that the

firm projects.

Setting service levels and measuring them may be difficult. Service standards, particularly those

relating to human behavior, are often set judgmentally and are difficult to measure. In manufacturing, it

is easy to measure output, scrap, and rework. Customer attitudes and employee competence are not

as easily measured.

Quality control activity may be required at times or in places where supervision and control personnel

are not present. Work must often be performed at the convenience of the customer. Hence, more

training of employees and self-management are necessary.

Implementing Quality management in Audi AG (Manufacturing Industry)

AUDI AG Uses Infrared Thermography for Quality Control

On the tyre testbed: infrared camera detects rolling resistance and heat development of tyre

Vorsprung durch Technik” has been the motto of automobile manufacturer Audi for decades. Driven by

this approach, the group now also makes intensive use of thermal imaging technology in order to meet

its exacting quality criteria.

AUDI AG’s headquarters in Ingolstadt, Germany, about 80 km north of the Bavarian capital Munich, is

also home to the Technical Development activities of the company with the familiar four-ring logo.

Audi has become one of the world’s leading premium car brands. As such, it sets particularly high

requirements for parts and components, whether supplied from outside or developed internally. Without

the consistent use of a fast, mobile, contact-free and reliable measurement tool which is also able to

generate visual images, top quality standards for manufacturing finish, vehicle safety and driving

dynamics would be scarcely possible.

Thermography: a significant component of the measurement and testing process at AUDI AG

“They started making regular use of thermography in 1998,” recounts Norbert Arnold, who is

responsible for thermography in engine development. “Both highly sensitive long-wave cameras and

short-wave cameras are used.” The short-wave cameras are used in particular for recording higher

temperatures (up to 2000 degrees Celsius).

Some 700 research engineers are involved in engine development work in Ingolstadt. All parts – from

simple items such as transmission belts to complex ones such as turbochargers or catalytic converters

– are thoroughly tested before they are cleared for production. “The thermographic catalytic converter

test is an art in its own right,” says Arnold, who supervises over the measurement instruments and the

measurement process. “We have to watch for an even distribution of heat at extreme temperatures.

And the short-wave camera’s image frequency of 50 Hz allows us to visualise this.”

A thermal imaging camera is also used on the engine test bed. New engines are put to trial for heat

build-up and distribution as well as the determination of the failure point. The camera’s ability to

visualize operating cycles is particularly useful, also for other components. According to Arnold, this

feature is especially valued by the development engineers.

Audi also uses a FLIR Systems infrared camera to test interior furnishing materials such as leather,

wood and synthetics on wear and tear and material resistance, including under extreme climatic

conditions.

Excellent temperature resolution and a high degree of accuracy are vital preconditions for all

measurements. The automobile manufacturer’s thermal imaging cameras are covered by FLIR

Systems Premier Service Package. “An investment” concedes Arnold, “but it ensures both accurate

measurements and the uninterrupted, problem-free deployment of our infrared cameras.”

Infrared forum at Audi

An initiative which underlines the importance of thermography is the infrared forum. Some thirty infra-

red camera specialists from various sites meet regularly to exchange information about the use of

thermographic applications in the fields of interior design, research and development, preventive

maintenance and production. The various departments and units draw up their own detailed emissivity

tables essential for precise temperature determination. They swap techniques and tips for tackling

problems with reflection from metal parts. This knowledge flows into a database and hence into the

Volkswagen Group’s knowledge management process. Moreover, all infra-red camera operators at

Audi have attended ITC courses (Infrared Training Center, an independent training institute providing

certification) and are certified Level 1 Thermographers.

The testing of supplied parts and internally developed engines using thermal imaging cameras is a

costly process, but it helps, among other things, to prevent expensive product recalls. And above all, it

ensures that an Audi continues to feel like an Audi.

About Infrared Thermography

Thermal imaging, also called thermography, is the production of non-contact infrared or “heat” pictures

from which temperature measurements can be made. Portable infrared cameras scan equipment and

structures, then instantly convert the thermal images into pictures in a JPEG format for monitoring and

analysis. Thermal imaging increases efficiency and maximizes safety in many industries and

environments and is rapidly expanding into new markets.

Implementing Quality management in Taj Hotel (Service Industry )

The overall strategic plan of TQM adopts the values and vision of the organisation’s philosophy and

makes these in to their long term goals to achieve. Identification of particular goals which an

organisation wants to achieve can be identified in a successful TQM strategy. How these strategies

which they adopted to achieve their goal will depends on the each department’s strategy to outline their

strategy. This process must have the involvement of the each and everyone in the organisation,

empowering each and every one to contribute for improving the quality continuously. The authority

should be there within the employees to implement new ideas and for problem solving. An effective

strategy for improving the quality will help people of an organisation to initiate improving their own

department and other departments. Every person in an organisation is responsible for producing

targeted results. Customers’ idea should also be checked on improving their current services and

products.

Few techniques using for the quality process are the following, flowcharts, brain storming, trend charts,

etc. improvement opportunities can identified with the help of these techniques. To achieving the

objectives and goals employees should have the knowledge on TQM, to ensure this is the key role of a

TQM committee. Selection and recruitment also required to include in the quality factors as part of the

process. Incentives should be given by the organisations to the employees in achieving the results.

Tools in Total Quality Management:

Here follows a brief description of the basic set of Total Quality Management tools. They are:

Check Lists

Scatter Plots

Effect and cause , Ishikawa, Fish Diagram

Check Sheets

Pareto Principle

Flow Charts

Histogram or Bar Graph

Control Charts

Check Lists:

The lists of items are relevant or important to a particular situation or issue. It is used under the

operational conditions to make sure that each important tasks are done in time. Check lists main

importance is not for data collecting, but for operation guidance. It is generally used to check that all

aspects of a particular situation have been taken in consideration before making or action.

Scatter Plots:

A line graph without lines is the Scatter plotsthere is physical line where the data are joining together,

but it is marked in the graph.

Effect and cause, Ishikawa, Fish Diagram:

Process dispersion can be analysed in this effect and cause diagram. The main purpose of this

diagram is to relate effects and cause.

Check Sheets:

It is the recording of data form which has been developed for the interpretation of results in the form

itself. Qualitative repetitive and quantitative data’s are collected in this method.

Pareto Principle:

In this principle it suggests that from relatively few courses only most effects are emerging. Eighty

percentages of problems are emerging from the twenty percentages of the causes; for example, 20% of

people own 80% of the wealth. So we can solve the 80 % of problems by aiming the rite 20 %. This

chart is helpful to compare after and before situations.

Flow Charts:

Text, pictures or symbols connected with lines, direction is showed with help of arrows. Help to

demonstrate a particular process with the help of Flow charts.

Histogram or Bar Graph:

Variation in set of data’s are demonstrated in a histogram. Patterns which we cannot see in a simple

table of numbers can be analysed in Histogram. Set of data’s conclusion can be analysed with the help

of histogram.

Control Charts:

It is the method of statistical process control (SPC).Rather than controlling each individual variation it

controls variation distribution.

Service Excellence:

From the last few years Indian Hotel Company Limited (IHCL) has taken several steps to enhance the

service standards of their hotels. They regularly benchmarked international luxurious chain hotels and

they try to increase their service standards constantly. Philosophy of the service of IHCL is the

core.They had taken several steps to enhance their personalised services to their Customers, butler

services in IHCL’s in their Premium properties. They had improved their concierge services to take care

the entire stay of their customer. They provide proper training to their employees to achieve the service

standard of a five start hotel. In order to increasing their service standards Tata Business Excellence

Model (TBEM) plays a major role.

TATA BUSINESS EXCELLENCE MODEL (TBEM):

This is to enhance their service standards to the international service standards they conduct proper

assessment regularly. For the external assessment also luxury division has applied, this is processed

by the Tata Quality Management Services. With the help of external and internal assessment report,

they plan their actions to constantly increase their bar of service standards. The key things they focus

will be on the following, improving their level in terms of service and product quality: To raise the

service standards to the international level of service standard they conduct external audits.

International Standards Introduction:

In order raise their service standards to the international level, they take the services and advices from

the hands of international expertise. They have introduced concierge service, butler services, and valet

services to improve their customers’ satisfaction while staying in Taj hotel and palaces.

Customer Feed Back System:

They introduce Customer Feed Back System back in 2003, and they have implemented this in their

various hotels. CFS is the main customer feedback system of IHCL group. Each feedback is recorded

and aggregated then it is evaluated properly in order to raise their service standards, also it will help to

point out where they are lacking in terms of customer services and their products.It is not only

consisting of guests’ complaints, they also try to get the guests suggestions to improve the standard of

services, which is a vital. Based on the customer feedbacks they can plan and design the products

more customer oriental.They reinforce the Balanced Score Board (BSC) to maintain the equal standard

throughout their properties. It is used as the key deployment strategy. The objectives of key strategy

are taken in the Balanced Score Board (BSC) and across the departments and units they implement

this.