Quality Management System (QMS) - University of Southern Mindanao PDF

UNIVERSITY OF SOUTHERN MINDANAO KIDAPAWAN CITY CAMPUS Sudapin, Kidapawan City QMS QUALITY MANAGEMENT SYSTEM What Is a Quality Management System? A quality management system is a management technique used to communicate to employees what is required to produce the d...

UNIVERSITY OF SOUTHERN MINDANAO KIDAPAWAN CITY CAMPUS Sudapin, Kidapawan City QMS QUALITY MANAGEMENT SYSTEM What Is a Quality Management System? A quality management system is a management technique used to communicate to employees what is required to produce the desired quality of products and services and to influence employee actions to complete tasks according to the quality specifications. 2 DEFINITION UALITY Does not mean an expensive product, it is fitness for use of the customer. “The totality of features and characteristics of a product or service, that bear on its ability to satisfy a given or implied need”. (ISO 9000) Satisfying the customer needs 3  CHAIN REACTION The importance of quality will be clear from the chain reaction on account of quality envisaged in Japan in the 1950s. The ‘chain reaction’ is depicted in Fig. 1.1 as follows: 4  DIMENSIONS OF QUALITY Product Quality 1. Functionality refers to the core features and characteristics of a product. The definition of functionality as per ISO / IEC 9126: 1991: “A set of attributes that bear on the existence of a set of functions and their specified properties. The functions are those that satisfy stated or implied needs”. 2. Reliability A car should not breakdown often. This is the reliability attribute to quality. Reliability is measured by mean (average) time between failures (MTBF). Reliability is an indicator of durability of products. 5 3. Usability A product should be easily usable. The customer should be able to use the product easily without the help of experts. Usability can also be measured by the time taken for training an operator for error-free operation of a system. 4. Maintainability refers to the ease with which a product can be maintained in the original condition. Products may become defective while in use or in transit. It should be repairable so as to retain the original quality of the product at the lowest cost at the earliest possible time. This applies to software, automobiles, household items such as refrigerator, air conditioners, personal computer, etc. For software, maintainability is defined in the Standard ISO 9126:1991 as “A set of attributes that bear on the effort needed to make specified modifications”. Maintainability is measured as Mean Time To Repair (MTTR). For instance, the MTTR of a street light controller is 15 minutes. 6 5. Efficiency This is applicable to most products. Efficiency is the ratio of output to input. If a car gives a mileage of 20 kms per litre of gasoline and another car with identical features gives 15 kms per litre, then the former is more efficient than the latter. 6. Portability This is more important in the context of software. Portability is defined as a set of attributes that bear on the ability of software to be transferred from one environment to another. The environment may be organizational, hardware or software environment. Any program purchased, such as an accounting software, should be usable in many different machines without any problem. This is portability. This feature is applicable even to consumer goods such as bulbs, razors, etc. 7  DIMENSIONS OF QUALITY Service Quality Unlike products, every service is made to order. Therefore, the service quality has additional features. In availing a service, the customer interacts more with the service provider. The quality of service depends to an large extent on understanding the correct requirements of the customer through such interactions. Each service has to be designed specifically for the customer. Hence, quality of service design is an important feature. Service delivery is another feature of service quality. Thus, the additional features of service quality are: – Quality of customer service – Quality of service design – Quality of service delivery 8 1. Quality of Customer Service Customer service is important in every business. In a service industry, meeting customers and finding out their implied requirements is more challenging. Therefore, ability to satisfy customer depends on the quality of customer service. This includes but is not limited to: How well the customer is received? How well the implied requirements are elucidated? How well the customer is treated/handled/satisfied? 2. Quality of Service Design Since services are usually made to order, it is important that the service is designed as per the requirements of the specific customer. For instance, a software product developed for a specific bank takes into account the unique requirements of the bank. Quality of service design in turn depends on the quality of customer service. 9 3. Quality of Delivery is important in any sector, but more crucial in case of services. Defects on delivery should be zero to satisfy the customers. Additional attributes of quality, which are applicable to both products and services, are given below:  Timeliness Delivery on schedule as per requirements of the customer is a must both in the product sector as well as in service sector. No customer likes waiting. Any anticipated delay in schedule should be communicated to customer well in advance. Timeliness is critical for many products and services. Delay in arrival of aircrafts or trains are instances of poor quality of the services encountered in day-to-day life. 10  Aesthetics A product or service should not only perform well but also appear attractive. Therefore, aesthetics is an important element of quality. Aesthetics may include, but not limited to the appearance of the product, the finish, colour, etc. Customers will buy only those refrigerators or TV receivers or music systems, which look good.  Regulatory Requirements as stipulated by the local and federal governments should be fulfilled by the product or service. For instance, an automobile has to meet Euro II Standards in respect of emission to minimize environmental pollution. Similarly, there are regulatory requirements in respect of safety of electro-medical products. 11  Requirements of Society The products should fulfill both the stated and implied requirements imposed by society. The customer requirement should not violate society or regulatory requirements. Thus to satisfy a customer, a product cannot be built in such a way as to violate the requirements of society of a safe and healthy product. For instance, providing belts for persons sitting in the front seat in a car is a requirement of the society. Hence, the car manufacturers should provide belts for the passengers travelling in the front seat.  Conformance to Standards Product or service should conform to the stated and implied requirements of customers. Where applicable, they should conform to applicable standards such as national standards, international standards and industry standards. For instance, Electro- Magnetic Interference (EMI) from a PC should be within the limits prescribed by the corresponding standard. 12  HISTORY OF QMS Worked in Western Electric Company and AT&T, USA. He advocated Statistical Quality Control (SQC) and Acceptable Quality Level (AQL). AQL is the foundation of today’s Six Sigma. He is the father figure of SQC, who developed control charts for quality assessment and improvement. Dr Shewhart also developed the Plan, Do, Check, Act (PDCA) cycle for continuous improvement, which is in use even today. He is the author of the following books: Economic Control of Quality of Manufactured Products Dr. Walter A Shewhart (1891-1967) Statistical Method from the View Point of Quality Control 13  An associate of Shewhart, worked in Western Electric Company as a statistician. He was invited to Japan to lead the quality movement. He modified PDCA cycle of Shewhart to the Plan, Do, Study and Act (PDSA) cycle. He also advocated extensive use of statistics and control charts and focused on product improvement and service conformance by reducing variations in the process. He joined the US Census Bureau in the year 1939 and proved that quality control methods could lower costs even in an exclusive service organization. During the 1950s Deming visited Japan 18 times, held seminars and worked with Japanese Union of Scientists and Engineers (JUSE). Deming stressed on the importance of suppliers and customers for the business development and improvement. He believed that people do their best and it is the system that must change to improve quality. His 14 points formed the basis for his advice to Japanese top management. The Deming W. Edward ( 1900-1993) 14 points are applicable to every industry in product and service sector. 14  Juran also joined Western Electric Company and developed Western Electric Statistical Quality Control Handbook. JUSE invited him to Japan in 1954. He identified fitness of quality and popularized the same. JURAN’S FITNESS OF QUALITY 1. Quality of Design – through market research, product and concept. 2. Quality of conformance – through reliability, maintainability and logistic support. 3. Availability – through reliability, maintainability and logistic support. 4. Full service – through promptness, competence and integrity. JURAN’S QUALITY PLANNING ROADMAP Identify your customers. Determine their needs. Translate them into your language. Develop process, which can produce those product features. Prove that the process can produce the product. Joseph M. Juran (1904) Transfer the resulting plans to the operating forces. 15  Crosby was Vice President of International Telephone & Telegraph (ITT). His 4 absolutes of Quality4 are very relevant to TQM. CROSBY’S FOUR ABSOLUTES OF QUALITY 1. Quality is conformance to requirements, nothing more or nothings less and certainly not goodness or elegance. 2. Quality has to be achieved by prevention and not something close to it. 3. The performance standard must be zero defect and not somethings close it. 4. The measurement of quality is the price of non-conformance, i.e how much the defects in design, manufacture, installations and service cost the compony. It is not indexes, grade one or grade Philip B. Crosby (1926) two. 16  He was President of American Society of Quality Control (1961–1963). He said, “Quality is in its essence a way of managing the organization”. He suggested the following methodology for cycle time reduction FEIGENBAUM’S CYCLE TIME REDUCTIONS METHODOLOGY 1. Define process 2. List all activities 3. Flowchart the process 4. List the elapsed time for each activity. 5. Identify non-values adding tasks. 6. Eliminate all possible non-value adding tasks. Armand V. Feigenbaum 17  A Quality Guru from Japan, he strongly advocated the use of cause and effect diagrams to provide a true representation of the organizational impacts and procedures. He developed Fishbone or Ishikawa diagram for cause and effect analysis. Kauro Ishikawa (1915-1989) 18 QUALITY CONTROL (QC) Quality Control or QC may be defined as: The operational techniques and activities that are used to fulfill the requirements for quality. Juran gives 3 steps of QC: 1. Evaluate actual operating performance 2. Compare actual performance to goals 3. Act on the difference 19  QUALITY ASSURANCE (QA) All the planned and systematic activities implemented within the quality system, and demonstrated as needed, to provide adequate confidence that an entity will fulfill the requirements for quality. The purpose of QA is to fulfill the quality requirements of an entity, i.e. product or service, with adequate confidence by the supplier. This requires implementation of all the activities planned for building quality into the product. Such planned activities are to be implemented systematically within the purview of a documented quality system. Building quality into the products requires the following.  QUALITY OF DESIGN  QUALITY OF CONFORMANCE  QUALITY OF PERFORMANCE  QUALITY OF SERVICE 20 QUALITY OF DESIGN- It refers to how well the product or service has been designed to meet the current and future requirements of customers and add value to all the stakeholders. The stakeholders for any organization are: Customers Employees Owners Society QUALITY OF CONFORMACE- This indicates the consistency in delivering the designed product. Product quality in turn depends on the quality of all processes in the organization. Therefore, it involves all activities that will ensure the conformance of the products to its requirements consistently. 21 QUALITY OF PERFORMANCE- This indicates the consistency in delivering the designed product. Product quality in turn depends on the quality of all processes in the organization. Therefore, it involves all activities that will ensure the conformance of the products to its requirements consistently. QUALITY OF SERVICE- Selling a product is not the end of the business. It is the quality of associated services rendered that adds value to the product. Quality of services involves all activities that will enable the customer to procure and use the product without any hassles. 22  QUALITY PLANNING (QP) In order to consistently meet customer requirements, the quality of 4Ms namely — Man, Machine, Material and Methods need to be ensured. The objectives should be established for all the functions. The functions include suppliers, purchase, product design, engineering, production, in process inspection, final inspection, after sales service, etc. Quality planning refers to the activities that establish the objectives and requirements for quality. QP involves planning for the following about a product or service or project or a contract: Quality objectives to be met Specific of QA/QC practices Resources needed Sequence of QA/QC activities 23  QUALITY IMPROVEMENT This process aims at attaining unprecedented levels of performance, which are significantly better than the past level. 24  STRATEGIC PLANNING Strategic planning is important for any business. It involves making plans for the following, in particular: – Business value – Investment in machinery and equipment – Manpower to be hired – Budget – Product diversification – Markets to served – Strategies for improving profits, etc. 25  QUALITY MANAGEMENT (QM) According to ISO 9000 standards, Quality management comprises “All activities of the overall management function that determine the quality policy, objectives and responsibilities and implement them by means such as quality planning, quality control, quality assurance and quality improvement within the quality system.” The quality system consists of the organizational structure, procedures, processes and resources needed to implement quality management. The above brings out the following:  The company must have an objective and policy for quality of the products and services.  The organization should plan for meeting the objectives.  The plan should include QA, QC and methodology for improvement. 26  There must be a clear organizational structure for building quality into the products and services with necessary resources.  The quality management should be implemented formally with well-defined processes and procedures and trained resources. 27  TOTAL QUALITY MANAGEMENT (TQM) It was Feigenbaum who coined the phrase “Total Quality Control”. The concept is known in Japan as Company Wide Quality Control (CWQC). In 1985, the Americans came up with the term Total Quality Management (TQM) to represent essentially the Japanese way of Quality Management2. 28  JUST-IN-TIME (JIT) Tai-ichi Ohno of Toyota motors refined an idea for Just-In-Time. This means that at no stage of manufacturing nobody or nothing waits for anything. This is to ensure that there is no wastage of machinery, materials and manpower. JIT focuses on right scheduling so as to keep inventory as low as possible. This requires a perfect partnership between supplier and customer. 29  ISO 9000 STANDARDS ISO 9000 Standards were released for the first time in the year 1987 to bring in system for quality in every organization. The standard was revised in 1994 and later in the year 2000. The standard in the latest version advocates TQM and continuous process improvement. 30  DEMING AWARDS FOR QUALITY To express their gratefulness, Japanese instituted a Quality Award in the name of Deming in the year 1951. The award is now given not only to companies in Japan, but even overseas who excel in quality. 31  COST OF QUALITY Cost of Quality (COQ) Is defined as a methodology that allows an organization to determine the extent to which it’s resources are used for activities that prevent poor quality, that appraise the quality of the organization’s products or services and that result from internal and external failures. 32 The cost of Quality can be divided into four categories. They include: Prevention Appraisal Internal failure, and External failure Within each of the four categories there are numerous possible sources of cost related to good or poor quality. 33  Cost of quality Cost of good quality Cost of poor quality Prevention Appraisal costs Internal failure External failure 1. Process control 1. Incoming inspection 1. Process delay 1. Customer 2. Education/training 2. In-process inspection 2. Rework returns/complaints 3. Planning 3. Final inspection 3. Scrap 2. Warranty charges 4. Quality audits 4. Calibration 4. Retest 3. Lost 5. Supplier evaluation 5. Quality audits 5. Downtime opportunities/cust 6. Design review 6. Test materials 6. Loss of capacity omers 7. Risk assessment 7. Test products 7. Redesign 4. Rework after 8. Variation 34 installation 9. Problem solving 5. Late delivery Why are quality cost important? Applying the cost of quality can help a business understand the number of resources that should be allocated to the right channels to maintain customer satisfaction, quality and ultimately profit. 35 Why quality cost is important to TQM In the understanding of total quality management, the transition of the production of quality goods and services may incur additional costs to businesses. However, achieving a certain quality standard in the goods and services produced will lead to increased competitiveness and reduced costs. 36