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Quality Management

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Quality Management

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Content

Subject: Total Quality Management
1. Introduction to TQM
2. History of Quality & Advantages
3. Principles of TQM
4. Basic Concepts & Models of TQM
5. Characteristics of TQM
6. Quality Circles & Quality Improvement Teams
7. Responsibilities for Qualities
8. Management for Quality
9. Total Quality Management Philosophies
10.
Quality Assurance
11.
Quality Awards
12.
Malcolm Baldridge Quality Award
13.
Deming Prize, Deming Management and 14 Points
14.
Customer Satisfaction
15.
Customer Driven Quality Cycle
16.
Methods of Continuous Improvement
17.
Benchmarking
18.
Quality Control in Manufacturing System
19.
Quality Control in Services System
20.
Service Quality Characteristics
21.
Implementation of TQM
22.
Quality Costs
23.
Management for Quality
24.
Functions of Management for Quality
25.
TQM – Environmental Management
26.
ISO – 14000 and Implementation
27.
Quality System – ISO – 9000
28.
ISO – Certification & Examples
Books For Reference
1. Quality Control
By Dale H. Besterfield
2. Fundamentals of Quality Control & Improvement
By Amitava Mitra
3. Practice Approach in Quality
By Arnaldo Hernansez
4. Quality Systems Hand Book
By David Hoyle
5. Total Quality Management & ISO 14000
1

By Dr. K.C. Arora
Quality
 Quality means conforming to specifications and standards.
 Quality means productivity, competitive costs, timely and delivery
and total customer satisfaction.
 Fitness for use is Quality.
 Product Quality is decided by the customers’ needs, conforming to
specifications, assured performance and safety, proper packaging,
timely delivery, efficient technical service and incorporating
customer’s feedback.
 In service quality speed of response, dependability, control and
facilities are important factors.
 Quality is what the customers say it is.
The fundamental factors, which affect the product quality, are:
a) Markets

b) Materials

c) Men

d) Machines

e) Money

f) Methods

g) Management

h) Miscellaneous

Total Quality
It

means

all

people

of

the

organization

are

committed

to

product/service quality by doing thing right, first time, every time by
employing organizational resources to provide value to customers.
Total Quality is a moneymaker. Total quality puts pride, challenge,
learning and craftsmanship back into the job.
At present starting point is customer needs. These customer needs
are converted in to product / service features. Process produces the
2

product/service as per customers’ requirements. Inspection of the
product is done at different stages. Feedback from customers is
obtained and information is given to product designer, product
designer has to look quality of a product during its complete life span.
Feedback from inspection is given to manufacturing planning and to
product designer. Every one in any organization is producing an
output



product/service/information.

Thus

every

one

in

the

organization has a customer.
Failure to meet the needs and explanations of internal customers can
result in a poor quality product. Four essentials are:
 Reduced Defects
 Improve Productivity
 Improve customer satisfaction
 Delighted Customer
TOTAL QUALITY MANAGENENT
The Total Quality Management (TQM ) is an enhancement to the
traditional way of doing business. If we analyze it in detail we see:
Total = Made up of the whole.
Quality = Degree of Excellence a product or service provides
Management = Act, art or manner of handling, controlling, directing,
etc.
Therefore, TQM in short is the art of managing the whole to achieve
excellence.
When the work “Quality” comes into our mind, we usually think in
terms of an excellent product or service that fulfills or exceeds our

3

expectations. When a product surpasses our expectations we consider
it as the quality of that product.
Quality may mathematically be expressed as:
Q=P/E
Where: Q = quality,

P = Performance,

E = Expectations

If Q comes out greater than 1.0 then the Quality of that product or
service is termed as good.
Quality has nine different dimensions on which basis it is usually
assessed. They are as under:
1. Performance: Primary product characteristics.
2. Features: Secondary Characteristics or added features.
3. Conformance: Meeting Specifications or standards.
4. Reliability: Consistency of performance over time.
5. Durability: Useful Life.
6. Service: Resolution of problems and complaints, ease of repair.
7. Response: Human to human response.
8. Aesthetics: Sensory characteristics such as exterior finish.
9. Reputation: Past Performance, such as being ranked first.

4

HISTORY OF QUALITY
The history of quality is as old as the human civilization itself is.
Before industrial revolution manufacture was essentially conducted by
the cottage industry approach and relied heavily on craftsmen. The
craftsman were trained enough to attain the quality and standard of
work. With the advent of the industrial revolution manufacture broken
into small jobs. The craftsman became inspectors and standards
emerged. Unskilled workforce performing limited skill operations.
Two

world

wars

demanded

a

further

rapid

expansion

in

manufacturing. Industries rely on the use of inspectors to ensure the
quality of product leaving the factory – quality control. Quality is the
responsibility of everyone from R & D stage through project
definition, design, manufacturing and customer support.
 A statistical approach to assist quality emerged in 1924.
 The Deming prize was introduced first in 1951 to statistical quality
control.
 In 1952 cause and effect diagram introduced by K. Ishikawa
 In 1960 quality assurance emerged
 In year 1962 zero defect introduced
 Feigenbaum coined the term TQC in 1983, which became TQM
afterwards.
 In year 1987 introduction of quality standards based on ISO 9000.
Advantages/Benefits of TQM
The major advantages of TQM are as under:
1. Improved competitiveness – Quality is profitable
2. Better profitability – better returns. Reduction in operating cost
3. Increased sales and market share

5

4. Enhanced

customer

satisfaction,

Number

of

customers

increased
5. Improved cost effectiveness – Reduced cost, unit cost reduction
6. Reduction in rejection, scrap and wastage – reworking
7. Better control on processes
8. Successful new product launch
9. Speedy new product introduction, more new models
10.

Reengineered process

11.

Improved quality, continuous improvement is an important

thing of TQM
12.

Improved productivity

13.

Better

relations,

employees

Job

satisfaction

and

employees’ participation
14.

fuel saving

15.

Cleanliness, less space is required, better house keeping

16.

Improved system

17.

Standardization of work routine, quality process

18.

Respect humanity

6

Principles of TQM
Following are the some important principles of TQM:
1. Delight the Customer
Delight means bring best at what really matters most to the
customers
2. Management by fact
Decisions are based upon fact
3. People based Management
Everybody must be involved. The more people feel involved, the
greater

will

be

their

commitment

to

customer

satisfaction.

Performance appraisal and reward system is must. Do it together.
Motivated people. Empowerment
4. Continuous Improvement
TQM is a management process that recognizes that however
much we may improve, our competitors will continue to improve and
our customers will expect more from us. Quality monitoring is
necessary.
5. TQM ends and begins with education and training.
6. There is need for strategic quality planning.
7. TQM is supported by quality system measure and control.
8. TQM cannot afford week links/processes.

Model for Quality Excellence:
 World-class quality through continuous improvement is possible
through TQM i.e.

7

 Total employees’ involvement
 Total waste elimination
 Company wide/total quality control
 ISO 9000 is just a milestone in TQM journey
 Information technology strategy
BASIC CONCEPTS OF TQM
Total Quality Management is both a philosophy and a set of guiding
principles that represent the foundation of a continuously improving
organization. It is the application of quantitative methods and human
resources to improve all the processes within an organization and
exceed customer needs now and in the future.
Total Quality

Management integrates fundamental management

techniques existing improvement efforts and technical tools under a
disciplined approach. TQM requires some basic concepts:
1. A committed and involved management to provide long term top to
bottom organizational support
2. An unwavering focus on the customer, both internally and
externally
3. Effective involvement and utilization of the entire work force
4. Continuous improvement of the business and production processes
5. Treating supplies as partners
6. Establishing performance measures for the process
7. Customer satisfaction. Be customer focused
8. All work is process. Make it a good place to work, create a work
culture which will lead to satisfied customers.
9. Continuous improvement cycle
10.

Prevention

These concepts outline an excellent way to run a business.

8

A Company will not begin the transformation to Total Quality
Management until it is aware that the quality of the product or service
must be improved. Awareness comes about when a company loses
market shares or realizes that quality and productivity go in hand – in
– hand. It also occurs when TQM is mandated by the customer or
when management realizes that TQM is a better way to run a business
and compete in domestic and world markets.
Automation and other productivity enhancements will not help a
corporation if it is unable to market its product or service because the
quality is poor. The Japanese learned this fact from practical
experience.
Recent evidence suggests that more and more corporations are
recognizing the importance and necessity of quality improvement if
they are to survive domestic and worldwide competition. The
prevention of product and process problems is a more desirable
objective

than

taking

corrective

action

after

the

product

is

manufactured.
TQM is not something that will occur overnight. It takes a long time to
build the appropriate emphasis and techniques into the culture.
Overemphasis on short-term results and profits must be set aside so
long – term planning and consistency of purpose will prevail.
CHARACTERISTICS OF TQM
Some important characteristics are as under:
1. Operation/process leading to end result
2. Do your best as a team
3. PDCA cycle – In built Deming improvement cycle
9

P — Determine goals and targets. Determine methods of
reaching goals, plans.
D — Do, Engage in education and training, implement
work.
C — Check the efforts of implementation.
A — Act, lake appropriate action
4. Participative Management
5. Reward system should be based on need theory
6. Suggestion system should be provided
7. Non-financial incentives should be given for best suggestions

Why TQM is needed?
TQM is needed:
 To develop the best world-class organization
 To built a happy bright place
 To display human capabilities fully by drawing out infinite
possibilities
 To reduce cost continuously
 To Improve quality continuously
 To develop problem solving skills
Economic

Justification of TQM
Profit

Cost

10

Profit

Cost

Imperfect Organization

TQM Company

Higher Cost due to deficiencies

Lower cost due to no
deficiency

Low Profit

High Profit

What revolutionary changes occur with the adoption of TQM?
When organizations go for TQM following revolutionary changes
emerges with the adoption of TQM.
 Turn employees from skill holders to disseminators.
 Get people to perform machine-oriented activities with full
quality focus.
 Measure key parameters of all activities.
 Use scientific methods.
 Use technology efficiently.

11

 Build up of continuous learning and improvement in all allied
processes.
 Get the work force to manage himself
 Use customer and competitor to drive all decisions
 Use sincerity and trust as a basis for all dealings. Saying =
Doing
 Deploy the whole work force
 Bench marking data
 Compensate for weaknesses inherent in culture.
 Maintain at all times; focus on objective to satisfy by customers
better than competitors do.

Quality Circles and Quality Improvement Teams
A quality circle is typically an informal group of people that consists of
operators, supervisors, managers and so on, which get together to
improve ways to make the product or deliver the service. The concept
behind quality circles is that, in most cases, the persons who are
closest to an operation are in a better position to contribute ideas that
will lead to an improvement in it. Thus improvement-seeking ideas do

12

not come only from managers but also from all other personnel who
are involved in the particular activity. A quality circle tries to
overcome barriers that may exist within the prevailing organizational
structure so as to foster an open exchange of ideas.
A quality circle can be an effective productivity improvement tool
because it generates new ideas and implements them. Key to its
success is its participative style of management. The group members
are actively involved in the decision making process and therefore
develop a positive attitude toward creating a better product or
service. They identify with the idea of improvement and no longer feel
that they are outsiders or that only management may dictate how
things are done.
Quality circles have been used in Japan since the early 1960s. They
have led to numerous improvements in product quality. Toyota for
example has used this approach to identify critical problems and
determine remedial measures. Brainstorming sessions are usually
conducted under the guidance of a group leader. In the United States
quality circles were implemented in the early 1970s. Lately the use of
this tool has not been increasing and is nowhere close to the levels
seen in Japan.
One possible reason for this difference is the lack of statistical
training of U.S workers. Another reason is the reluctance of U.S
managers to share power with employees. Identification of possible
problems and remedial actions requires a statistical background. For
almost two decades Japan has conducted training programs in
statistical methods for all of their personnel. U.S companies have not
done this and they are only now realizing the importance of
understanding statistical concepts.
13

The improvement team is another means of identifying feasible
solutions to quality problems. The quality improvement team may
consist of personnel from design and development, engineering,
manufacturing, marketing and servicing. A key advantage of such a
team is that it promotes cross-disciplinary flow of information in real
time as it solves the problem.
RESPONSIBILITY FOR QUALITY
During the industrial revolution, the concept of specialized labour was
introduced. Prior to this time, an individual, who was therefore solely
responsible for its quality, made the entire product. Mass production
methods were introduced during the industrial revolution, and jobs
became more specialized as products became more complicated. A
supervisor was responsible for quality control, with the focus
primarily on inspection. Over the years, the emphasis changed from
defect detection to defect prevention. Thus no longer is one person or
one

department

is

responsible

for

quality,

it

is

every

one’s

responsibility. The commitment starts with top management and
spreads throughout the organization.
Following are some specific responsibilities associated with various
departments or units within an organization.
1. Marketing & Product Planning
The marketing and product-planning department determines the
needs and requirements of the customer. Additionally they supply
information on the price that the customer is willing to pay. This
department obtains information through such means as market
surveys

conducted

via

questionnaires,

representatives and customer complaints.
14

feedback

from

sales

2. Product Design & Development
The responsibility of the product design and development unit is to
develop product specifications, determine the raw materials or
components to be used and decide on the performance characteristics
of the product. It uses the information on customer needs found by
the marketing department as input.

3. Manufacturing Engineering
The

manufacturing

engineering

department

is

responsible

for

determining the details of the manufacturing process. It designs the
equipment, work methods and procedures, inspection tools and
sequence of operations. It conducts analysis to determine whether
existing manufacturing facilities and resources are capable of
producing the product with the quality specified in the design phase
4. Purchasing
The

purchasing

department

obtains

the

raw

materials

and

components for the product. It selects vendors whose products meet
certain incoming quality requirements. If there is a lot of variation in
the incoming quality of raw materials an undesirable variability will
occur in the outgoing product. Vender quality control is under the
jurisdiction of this department. In selecting vendors, quality and cost
are important factors.
Vender quality control involves developing a long term relationship
with a few high quality vendors. This practice has been extensively
followed in Japan and has several advantages for both parties. For
instance, the company does not have to go through the vendor
selection process as frequently, this is good because evaluating
15

vendors can be time consuming and costly. Furthermore, the good
relationship enables the company to depend on the vendor when
demand for the company’s product is uncertain. In peak demand
periods, the company can still obtain all of its materials from the same
vendor without searching for addition ones. Achieving company’s goal
is easier with one source rather than with many.
5. Manufacturing
The manufacturing unit is responsible for producing a quality product.
It must control the operations, process parameters and operator
performance to achieve the desired level of quality. Control charts are
often used for such purposes.
6. Inspection & Test
The inspection and test unit is responsible for appraising the quality
of incoming raw materials and components as well as the quality of
the manufactured product or service. It also specifies the type of
inspection devices to use and the producers to follow to measure the
quality characteristics of interest.
7. Packing & Shipping
The packing and shipping unit is responsible to check how the
product is packaged and transported to the customer. This function
serves to protect the quality of the product during the process of
storage and shipment. For instance, in the case of products that are
brittle (such as glass mirrors) proper packing methods must be used
so that the items are not damaged during transportation and
delivering to the customers.
8. Customer Service

16

The customer service department is responsible for installation,
maintenance and repair of products. Its purpose is to help the
customer get the most out of the product and to assist the customer
when required. The promptness, politeness and accuracy of customer
service is sometimes all that stands between a satisfied customer and
a dissatisfied one.
CUSTOMER

Marketing &
Product Planning

Customer Service

Product Design &
Development

Packing &
Shipping

Manufacturing
Engineering

Inspection &
Testing

Manufacturing

Purchasing

APPROACHES TO TQM
I. De buffering
 Quality circle
 Total quality control
II. Scientific styling

17

 Robust design offline quality control
 High technology circle
 Total preventive maintenance
 Statistical and management tools
III. Whole work force deployment
 New technology Deployment
 Policy deployment
 Automation deployment
 Quality function deployment - to anticipate, identify and
translate the vague expectations of the customer in to product
and service features, is a vital pre design exercise.
IV. Process engineering.
 Process improvement
 Process execution automation
 Process Architecting
 Process deployment automation
V. Organization Transparency
Customer managed corporation, customer aided design.

TQM MODELS
There are important theories, which are called models to improve the overall quality.
They are as under:

18

1. JURAN MODEL
This model emphasis on the following considerations:
1.

Quality Planning

2. Quality control
Chronic defects occur when process is incapable of consistently producing
satisfactory output. Process needs to be improved. Sporadic defects occur when the
process is capable but has gone out of control. This is time to repair it or put it back in
place.
3. Quality Improvement
a) Quality Planning involves analysis of customer needs, product and process in
preparation for implementing quality control.
b) Quality control
c) Quality improvement approach identifies sources of unacceptable variation and
eliminating sources of poor quality makes adjustments in product design,
processes, procedures etc. there, such that the costs of poor quality can be greatly
reduced. The new zone of quality control translate to improve customer
satisfaction, increased sales, lower unit material labour costs, increase overall
process capacity, a more motivated and secure work force with greater self esteem
etc. As the improvement process progresses, lessons learned provide feedback to
improve the planning process.

2. THE QUALITY PLANNING ROAD MAP





Delighted Customer
Empowered Employee
Higher Revenues
Lower Costs

19



Process-Quality Planning



Quality Control



Quality Improvement



Infrastructure Quality system



Customer supplier partnership



Total

organisation

involvement

Measurement & Information. Education
and Training


Strategic Quality Planning



Execution Leadership



Customer focus

3. THE DEMING CHAIN REACTION
a) Improve quality

b) Costs decrease

c) Productivity improves

d) Capture the market

e) Stay in the business

f) Provides jobs and more jobs

4. THE CROSBY PROGRAM
a) Management Commitment

b) Quality improvement team

c) Quality Measurement

d) Cost of Quality Evaluation

f) Quality Awareness

g) Corrective Action

h) Establish an ad hoc committee for the zero defects programme
i) Supervisor training

j) Zero defect day in a year/month/weak

k) Goal setting

l) Error cause removal

m) Recognition

n) Quality councils

o) Do it over again

20

Management For Quality
Management of the total quality system is achieved through the
functions of planning, organizing, staffing, directing and controlling.
S.

Managemen Product

Action to be taken

21

No.
1.

t Functions
Plan

2.

Organize

3.

Staff

4.

Direct

5.

Control

Phase
Proposal
Phase

 Develop Quality Policy
 Plan for Quality
 Set up Guidelines for system
administration
 Consider
product
liability/user safety
Design/Plann  Develop
an
organization
ing Phase
structure
 Design Assurance
 Design Change Control
 Develop production quality
Planning
Pre
 Select Employees
Production
 Train Employees
Phase
 Motivate Employees
Production
 Monitor purchased materials
Phase
quality
 Monitor
process
quality
control
 Direct final inspection
 Direct handling/inspection
Production &  Obtain quality information
Post
 Get
data
on
field
Production
performance
Phase
 Take corrective action
 Conduct statistical quality
control
 Manage quality costs

1. Planning For Quality
Planning is a necessary requirement for a successful quality program.
In the planning process, the company considers its quality mission
and objectives its key qualities as prescribed by the consumer, its
market commitments, its available human resources and production
facilities and its financial constraints. Based on the company’s
strategy, the different areas of the organization develop goals to
support the set mission. The goals and objectives of middle

22

management

are

converted

to

operational

plans

that

will

be

implemented by all levels of management.
Quality planning may be categorized as administrative plans and
product

oriented

plans.

Administrative

plans

deals

with

the

operational and business aspects of the company. The product
oriented plan, on the other hand deals with marketing, product and
process design, and production engineering.
2. Organizing for Quality
An organizational structure is created to establish lines of authority
and

responsibility,

to

improve

communication

and

to

improve

productivity. The major activities involved in organizing for quality
consist of defining quality related activities and the inter relationships
between them, assigning responsibility for each of the tasks and
subdividing tasks down to the worker level.
3. Staffing For Quality
The success of a company wide quality program depends on all
personnel being committed to the quality philosophy. Everyone must
develop a sense of ownership in the production of a quality item.
Placing personnel with the appropriate training in statistical quality
control techniques in key positions facilitates the implementation of
quality.
To ensure the achievement of a certain level of knowledge regarding
quality, certification programs are administered by the American
Society for Quality Control. Examples of such certification programs
are those for the Certified Quality Engineer (CQE) and the certified
Reliability Engineer (CRE). An organization should staff its managerial
positions with candidates certified in the appropriate quality area.

23

Additionally, a company can give them incentives to become certified
either through salary increase, promotions, or acknowledgements
through awards.
4. Directing For Quality
Once quality has been incorporated into the design of the product, the
production phase takes measures to ensure that the produced item
conforms to the design specifications. The quality of purchased raw
materials and compounds is important in this phase, so vendors must
be monitored for quality control.
5. Controlling For Quality
The control aspects occur during the production and postproduction
phases. The objective is to determine out of control process conditions
and product non-conformance as early in the production phase as
possible. To achieve these procedures must be established to obtain
relevant process information on a timely basis. Possible rectifying
actions must be identified in case the process is found to be out of
control. Such rectifying actions must be taken when appropriate.
Total Quality Management Philosophies
Several people have made significant contributions in the field of
quality control. W. Edwards Deming, Philip B. Crossby and Joseph M.
Juran are considered pioneers in the field of quality control.
W. Edwards Deming and his Contribution
W. Edwards Deming is credited with the impressive turnaround in
Japanese industry after World War II. In 1950, the Union of Japanese
Scientists and Engineers (JUSE) invited Deming to address their
leading industrialists. Japan had a reputation for poor quality at that
time. Their domestic economy was shattered and JUSE was looking at

24

ways to jump-start the Japanese economy. They took Deming’s advice
to heart and set about totally revamping their industrial culture.
Through their total philosophical commitment to Deming’s methods,
Japanese industry moved to the forefront.
What we see today are the results of using Deming’s philosophy over
the last four decades. Improvement in quality did not happen
overnight but Deming knew with certainty that it would happen. The
Japanese continue to Deming’s ideas and they constantly seek ways to
improve their processes and products.
In 1951, JUSE instituted the coveted Deming Award, an annual award
given to the individual or firm contributing most to the advancement
of industrial quality. Recipients of this award include companies like
Toyota, Nissan, Nippon Steel and Hitachi. The first U.S Company to
win the Deming Award was Texas Instruments in 1985.
Philosophy
Deming’s Philosophy emphasizes the role of management. Of the
problems that industry faces, Deming said that 85% could be solved
only by management. In Deming’s world, worker’s responsibility lies
in communicating to management the information they possess
regarding the system. The Deming’s ideal management style is
holistic: the organization is viewed as an integrated entity. The idea is
to plan for the long run and provide a course of action for the short
run.
Deming believed in the adoption of a total quality program and
emphasized the never-ending nature of quality control in the quality
improvement process. Such a program achieved the desired goals of

25

improved quality, customer satisfaction, higher productivity and lower
total costs in the long run.
Deming advocated certain key components that are essential for the
journey

toward

continuous

improvement.

The

following

four

components comprise the basis for what Deming called the system of
Profound Knowledge.
a) Knowledge of the system and the Theory of Optimization.
Management needs to understand that optimization of the total
system is the objective. The total system consists of all constituents
---- customers, employees, suppliers, shareholders, the community and
the environment.

b) Knowledge of the Theory of Variation
All processes exhibit variability, the causes of which are of two types:
Special causes and common causes. Special causes of variation of
variation are external to the system. It is the responsibility of
operating personnel and engineering to eliminate such cases.
Common causes, on the other hand are due to the inherent design and
structure of the system. They define the system. It is the responsibility
of management to reduce the common cause. A system that exists in
an environment of common causes only is said to be stable and in
control. Once a system is considered to be in control its capability can
be assessed and predictions on its output made.
c) Exposure to the Theory of Knowledge
Information by itself is not knowledge. Knowledge is evidenced by the
ability to make predictions. Such predictions are based on an

26

underlying theory. The underlying theory is supported or invalidated
when the observed outcome is compared to the predicted value.
d) Knowledge of Psychology
Managing people will require knowledge of psychology because it
helps us understand the behavior and interactions of people, and also
the interactions of people with their environment. Also required is
knowledge of what motivates people. People are motivated by a
combination of intrinsic and extrinsic factors. Job satisfaction and the
motivation to excel are intrinsic. Reward and recognition are
extrinsic.
Management needs to create the right mix of these factors to
motivate employees.
Philip B. Crossby’s Philosophy
Philip B. Crossby’s Philosophy has a particularly wide-ranging
understanding of the various operations in industry because he
started as a line inspector and worked his way up. Such first hand
experience has provided him with a keen awareness of what quality is,
what the obstacles to quality are and what can be done to overcome
them.
In order to understand the meaning to understand the meaning of
quality, Crossby (1979) has identified four absolutes of quality
management.
Definition of Quality: Quality means conformance to requirements.
System for achievement of Quality: The rational approach is
prevention of defects.
Performance Standard: The only performance standard is zero
defects.

27

Measurement: The performance measurement is the cost of un quality
such as scrap, rework, services, inventory, inspection and tests.
Step Plan For Quality Improvement
Crossby has a 14-step plan that is given below:
1. Management Commitment
For quality improvement to be take place commitment must start at
the top. The emphasis on defect prevention has to be communicated
and

a

quality

policy

that

states

the

individual

performance

requirements needed to match customer requirements must be
developed.
2. Quality Improvement Team
Representatives

form

each

department

or

division

serves

as

spokespersons for each group they represent. They are responsible
for ensuring that suggested operations are brought to action. This
team brings all the necessary tools together.
3. Quality Measurement
Measurement is necessary to determine the status of quality for each
activity. It identifies the areas where corrective action is needed and
where quality improvement efforts should be directed. The results of
measurement, which are placed in highly visible charts, establish the
foundation for the quality improvement program.
4. Cost for Quality Evaluation
The cost of quality indicates where corrective action and quality
improvement will result in savings for the company. A study to
determine these costs should be conducted through the comptroller’s

28

office, with the categories that comprise quality costs precisely
defined.
5. Quality Awareness
The results of the cost non-quality should be shared with all
employees, including service and administrative people. Getting
everybody involved with quality facilitates a quality attitude.
6. Corrective Action
Open communication and active discussion of problems creates
feasible solutions. Furthermore, such discussion also exposes other
problems not identified previously and thus determines procedures to
eliminate them. Attempts to restore problems should be made as they
arise. For those problems without immediately identifiable remedies,
discussion is postponed to subsequent meetings.
7. Ad hoc Committee for the zero defects programs
The concept of zero defects must be communicated clearly to all
employees, everyone must understand that the achievement of such a
goal is the company’s objective. This committee gives credibility to
the quality program and demonstrates the commitment of top
management.
8. Supervision Training
All levels of management must be made aware of the steps of the
quality improvement program. Also they must be trained so they can
explain the program to the employees. This ensures the propagation
of the quality concepts from the chief executive officers to the hourly
workers.
9. Zero Defects (ZD) Day
29

The philosophy of zero defects should be established company wide
and

should

originate

on

one

day.

This

ensures

a

uniform

understanding of the concept for everyone. Management has the
responsibility of explaining the program to the employees.

10.

Goal Setting

Employees in conjunction with their supervisors should set specific
measurable goals. These could be 30, 60, or 90-day goals. This
process creates a favorable attitude for people to ultimately achieve
their own goals.
11.

Error Cause Removal

The employees are asked to identify reasons that prevent them from
meeting the zero defects goal. It is the task of the appropriate
functional group to come up with procedures for removing these
problems. Reporting problems should be done quickly.
12.

Recognition

Award programs should be based on recognition rather than money
and should identify those employees who have either met or exceeded
their goals or have excelled in other ways. Such programs will
encourage all participation of every one in the quality program.
13.

Quality Councils

Chairpersons, team leaders and professionals associated with the
quality program should meet on a regular basis to keep everyone up
to date on progress. These meetings create new ideas for further
improvement of Quality.
14.

Do it Over Again

30

The whole process of quality improvement is continuous. It repeats
again and again as the quality philosophy becomes ingrained.

Quality Assurance
Quality assurance means excellent working of entire system i.e.
policies, procedures and guidelines in order to achieve and maintain
quality in the manufacturing and services system. Quality assurance
consists of three basic functions: Quality Engineering, Quality Control
and Quality Management.
The purpose 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.
The purpose of quality control is to make a series of planned
measurements in order to determine the meeting of quality standards.
In case they are not met corrective action and further preventive
action must be taken to achieve and maintain quality.
The

quality

management

involves

the

planning,

organization,

directions and control of all quality assurance activities.
Quality in Manufacturing Systems
Quality is an important component of all functions in manufacturing
systems, for instance, effective market research is necessary to

31

determine customer needs and identify functional requirements for
product designers. Product designers must take care to neither over
engineering (inefficient use of resources) nor under engineering
products.

Purchasing

must

ensure

that

supplies

meet

quality

requirements. Tool engineering and maintenance are responsible for
ensuring that tools, gadgets and equipment are properly maintained.
Industrial engineering must select the appropriate technology that is
capable to meet design requirements.
Quality in Services Systems
A service is a social act, which takes place in direct contact between
the customer and representatives of the company.
Many service organizations such as airlines, banks, hotels and courier
companies have well developed quality assurance systems. 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.
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?
 Completeness: Are all items in the order included?
 Courtesy: Do 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?

32

 Responsiveness: Are the service personnel react quickly and
resolve unexpected problems?
The service providing companies should consider the following points:
 Quality Characteristics
 Quality Interaction
 Image
 Quality Management
QUALITY AWARDS
In order to highlight the importance of quality an award system was
introduced. Some of the important quality awards are discussed as
under:
Malcolm Baldrige Award
In 1987 Malcolm Baldrige Award was introduced in America. The
companies who succeed in attaining total quality management were
given this award. This award was named after secretary of commerce
Malcolm Baldrige. The purposes of the award were:
1. Help companies to improve quality and productivity with the
objective to obtain increased profits.
2. Recognize the achievements of these companies that improve the
quality of their goods and services.
3. Establish guidelines and criteria that can be used by enterprises in
evaluating their own quality improvement efforts.
4. Provide specific guidance for enterprises that wish to learn how to
manage for high quality.
Award Criteria

33

The award criterion is based on an Examination. The Examination
addresses key requirements to achieve quality excellence as well as
the important interrelationships among these key requirements. The
four basic elements are:
1. Senior Executive Leadership drives the system, creating the
values,

goals

and

systems

and

guides

for

quality

and

performance.
2. The system is comprised of a set of well-defined and welldesigned processes for meeting the company’s quality and
performance.
3. Measures of progress provide a result-oriented basis for
channeling actions to delivering ever-improving customer value
and company performance.
4. The basic goal of the quality process is the delivery of ever
increasing value to customers.
For the award the companies must excellently perform in seven key
areas they are described below:
1. Leadership
The

leadership

examines

executives’

personal

leadership

and

involvement in creating and sustaining a customer focus and clear
visible quality values.

2. Information and Analysis
This examines the scope, validity, use and management of data and
information to drive quality excellence and improve competitive
performance.

34

3. Strategic Quality Planning
This examines the company’s planning process for achieving or
retaining the quality leadership. This also examines the company’s
short and long term plans.
4. Human Resources Development & Management
This examines the key elements of how the work force is enabled to
develop its full potential to pursue the company’s quality and
operational performance objectives. This also examines company’s
efforts to build and maintain an environment for quality excellence.
5. Management of Process Quality
This examines the system process the company uses to pursue higher
quality and company performance. This includes key elements of
process management, research development and design for all work
units.
6. Quality and Operational Results
This examines the company’s quality levels and improvement trends,
operational performance and supplier’s quality. This also examines the
current quality and operational performance of competitors.
7. Customer Focus & Satisfaction
This examines the company’s relationships with customers and its
knowledge of customer requirements.

DEMING PRIZE
The highest prize for quality improvement in Japan is called Deming
Prize. Since 1951 the Japanese Union of Scientists and Engineers has
sponsored the Deming Prize. This prize is awarded to individuals and
companies who meet the criteria in pursuance of quality. The selection
35

criterion is based on a checklist of ten major categories that are given
below.
1. Policy
Management, Quality, Quality Control, Policy making method,
2. Organization and Operation
Authority and responsibility, Cooperation among divisions, Use of
staff, Quality control audits.
3. Education and Training
Education & training of employee, Plans and accomplishments,
suggestion system for improvements and its working for quality.
4. Collecting & Using Information
Collection of information, passing information to relevant divisions,
speed of transmitted information, statistical analysis
5. Analysis
Selection of priority problems, Quality analysis, analysis of results

6. Standardization
System of standards, setting & revising of standards, Use of statistical
methods
7. Control

36

System for control of quality, cost and production volumes, actual
control activities, state of control
8. Quality Assurance
New product development methods, safety and product liability,
measurement

&

inspection,

Quality

assurance

system,

Quality

assessment & audit
9. Effect
Measuring effects, quality service, delivery schedule, cost, safety
10.

Planning for Future

Plans for correcting defects, Plans for promoting quality control, long
term plans

THE DEMING MANAGEMENT PHILOSOPHY
The Deming’s management philosophy is basically a philosophy of
management and leadership. His ideas referred as “A System of
Profound Knowledge” is simple and is also called Principles of
Deming’s Philosophy.
Profound Knowledge
Profound knowledge consists of four parts and they are interrelated
with each other.
37

1. Appreciation for a System: A system is a series of activities
within an organization that work together for the aim of the
organization. The components of any system must work together
for the system to be effective. With cooperation all the people that
work within a system can contribute to improvement. To manage
any system managers must understand the interrelationships
among all components of the system.
Management must have some aim or purpose for which the system
is devised to work. Deming believes that the aim of any system is
for everybody – suppliers, employees, customers, community and
the environment.
Management’s job is to optimise the system so that everybody
wins. Deming states that it is poor management, for example to
purchase inexpensive materials of such inferior quality that they
will cause excessive costs. Likewise a focus only on manufacturing
cost might result in products that do not meet designers’
specifications and customers needs.

2. Theory of Variation: The second part of profound knowledge is
theory of variation. Variation in any process should be reduced.
With less variation both producer and customer are benefited. The
producer is benefited by having less need for inspection, less scrap
and rework and higher productivity. The consumer is benefited
from lower cost and the assurance that all products are similar.
A production process contains many sources of variation. Different
lots of material will vary in strength, thickness, etc. For example,

38

cutting

tools

will

have

inherent

variation

in

strength

and

composition. During manufacturing tools will experience wear,
machine vibration will cause changes in setting and electrical
fluctuations will cause variations in power.
3. Theory of Knowledge: The third part of profound knowledge is
the theory of knowledge. Theory of knowledge is a branch of
philosophy that is concerned with the nature and scope of
knowledge. Deming emphasis that there is no knowledge without
theory and that experience alone does not establish a theory.
Theory leads to questioning and can be tested and validated.
Theory establishes a cause and effect relationship that can be used
for prediction. Managers have a responsibility to understand
theory before blindly applying a technique.
4. Psychology:
interactions

Psychology
between

helps

people

and

us

to

understand

circumstances,

people,

interactions

between leaders and employees and the system of management. A
leader should keep him aware about differences and individuals’
abilities to optimise the system. Most managers operate under the
assumption that all people are alike.

39

CUSTOMER SATISFACTION
The first step of a certain manufacturing and service providing organization should be
identification of customer needs and expectations. A majority of today’s customers look
for goods services in terms of:
a) Values
b) Brand Image
c) Performance
Customer satisfaction means keeping customer requirement in mind.
a) Right quality
b) Right Quantity
c) At right time
d) At right cost
When the organization is customer oriented, it attempts in going to almost any length to
satisfy the customers. The organization give them the feeling of getting full value for
their money, delivering the products / services as promised.
A Japanese professor N. Kano suggested that three classes of customer needs exist:
a) Dissatisfiers, which are those needs that are expected in a product or service.
b) Satisfiers, which are, need that customers say they want.
c) Exciters/delighters, which are new or innovative features that customers do not
expect.
Satisfiers are determined through market research. Over time exciters/ delighters become
satisfiers as customers become used to them and eventually satisfiers become
dissatisfiers.

40

Customer Driven Quality Cycle
The customer driven quality cycle begins with actual customer needs and expectations
(expected quality) and ends with what the customer sees and believes the quality of the
product to be (perceived quality). Expected quality is what the customer expects will be
received from the product in reply to customer’s needs. Perceived quality is the
customer’s measure of satisfaction in the product or the feel in its quality. Between
expectations and perceptions the product is in the hands of the producer so he is in a
better position to identify and incorporate the needs.
Perceived Quality = Actual Quality -- Expected Quality
Research Strategies
Market research plays an important role in determining what features are important to
customers. Market research involves the direct survey of buyers as to their needs,
satisfaction and reasons for purchasing products. Information on customer needs comes
from other sources besides market research. Sales persons have first hand knowledge of
customer’s needs, desires, and comments about products. Technicians try to understand
the reasons for product’s failure and listen to comments of customers.

Quality Function Deployment
Quality Function Deployment (QFD) is a methodology to ensure that customer’s
requirements are met throughout the design process. Quality Function Deployment is a
philosophy and a set of planning and communication tools that focuses on customer
requirements in coordinating the design, manufacturing and marketing of goods.
A profit depends on quality and customer satisfaction. Reputations are built through
satisfying customers. The customer will have a need, which the organization is trying to
fulfill.
Customer Complaints

41

A complaint is any response or thought of a customer about any product or service that
does not meet their expectations. Complaints come through letters, survey results,
telephone calls, fax messages, comments to sales and service personnel.
Each quality complain possesses different problems:
a) Satisfying the complaint. Restoration of service claim, adjustment, restoration of
good will.
b) Preventing a reoccurrence of complaints.
c) Identifying the few vital serious complaints.
d) In depth analysis if discover the basic causes of the complaint.

Quality Measurement by Customers
 Appearance
 Esthetic Design
 Ruggedness
 Dependability
 Long Life
Customer Attitude
 Quality of Shipment
 Product Installation
 Product Operation
 Service
 Maintainability
Who can be a customer?
We can know who can be a customer by:

42

a) Flow diagram method
b) Activity log method

Different Types of Customers

Customers play the most significant part in business. In fact the customer is the actual
boss in a deal and is responsible for the actually profit for the organization. Customer is
the one who uses the products and services and judges the quality of those products and
services. Hence it’s important for an organization to retain customers or make new
customers and flourish business. To manage customers, organizations should follow
some sort of approaches like segmentation or division of customers into groups because
each customer has to be considered valuable and profitable.
Customers can be of following types:
1. Loyal Customers- These types of customers are less in numbers but promote
more sales and profit as compared to other customers as these are the ones which
are completely satisfied. These customers revisit the organization over times
hence it is crucial to interact and keep in touch with them on a regular basis and
invest much time and effort with them. Loyal customers want individual
attention and that demands polite and respectful responses from supplier.
2. Discount Customers- Discount customers are also frequent visitors but they are
only a part of business when offered with discounts on regular products and
brands or they buy only low cost products. More is the discount the more they
tend towards buying. These customers are mostly related to small industries or the
industries that focus on low or marginal investments on products. Focus on these
types of customers is also important as they also promote distinguished part of
profit into business.

43

3. Impulsive Customers- These customers are difficult to convince as they want to
do the business in urge or caprice. They don’t have any specific item into their
product list but urge to buy what they find good and productive at that point of
time. Handling these customers is a challenge as they are not particularly looking
for a product and want the supplier to display all the useful products they have in
their tally in front of them so that they can buy what they like from that display. If
impulsive customers are treated accordingly then there is high probability that
these customers could be a responsible for high percentage of selling.
4. Need Based Customers- These customers are product specific and only tend to
buy items only to which they are habitual or have a specific need for them. These
are frequent customers but do not become a part of buying most of the times so it
is difficult to satisfy them. These customers should be handled positively by
showing them ways and reasons to switch to other similar products and brands
and initiating them to buy these. These customers could possibly be lost if not
tackled efficiently with positive interaction.
5. Wandering Customers- These are the least profitable customers as sometimes
they themselves are not sure what to buy. These customers are normally new in
industry and most of the times visit suppliers only for confirming their needs on
products. They investigate features of most prominent products in the market but
do not buy any of those or show least interest in buying. To grab such customers
they should be properly informed about the various positive features of the
products so that they develop a sense of interest.
An organization should always focus on loyal customers and should expand or multiply
the product range to leverage impulsive customers. For other types of customers
strategies should be renovated and enhanced for turning out these customers to satisfy
their needs and modify these types of customers to let them fall under loyal and
impulsive category.

44

METHODS OF CONTINUOUS IMPROVEMENT
In western countries much attention is given to maintaining technical and operating
functions. The focus in Japan is given on improving those functions.
Continuous improvement had always remained a foundation step for the quality
improvement. Many opportunities for continuous improvement exist. These are:
1. Improving the organization by improving the human resources
2. Improving product design with features that meets customer’s needs
3. Improving manufacturing systems by reducing defects
1. Improving Human Resources
Human resources management recognizes the value of employees in meeting the
customer needs and on sharing the information, responsibility and rewards. In a TQM
environment significant changes occur in recruitment and training, performance appraisal
and compensations.
a) Recruitment and Training
Job recruitment has become a critical issue, as new technologies require ever-higher
levels of education and skills. Employees at all levels need to have more general skills
and the ability to learn new skills rapidly. Technologies can be purchased but people have
to be developed. Capable people are the foundation of high quality products, processes
and services. Renowned companies and organizations always invest heavily on trainings
and in the end they get success in achieving TQM.

45

b) Performance Appraisal
Performance appraisal is used for decisions involving compensations, training and
promotion. Performance is a function of both the individual and the system in which the
individual works. In a TQM environment people want to do an excellent job and will if
they are properly motivated allowed to participate and provided with adequate training.
In conventional performance appraisal a manager or a supervisor evaluates the work of a
subordinate by reviewing his accomplishments, strengths and weaknesses and rating the
individual according to various criteria.
c) Compensations
Many TQM focused companies now base their compensation on the market rate for an
individual with proven capabilities and then increase the employees’ wages and
responsibilities. A well-designed pay, benefit and reorganization system provides
motivation to employees.
2. Improving Management Practices
According to Deming and Juran upwards of 85 to 95 percent of quality problems are the
responsibility of management not the workers. Therefore continuous improvement
programs focusing on the workforce give limited results. Greater results can be achieved
through improved management practices.
The Malcolm Baldrige National Quality Award is such an example to provide a
comprehensive set of guidelines for improving management practices leading to higher
quality and productivity.

46

3. Improving Products and Services
The function of quality engineering includes evaluation and improvement of design of
products. Important techniques of quality engineering include value engineering and
design reviews.
a) Value Engineering
Value engineering analyze the function of every component of a product, system, or
service to determine how that function can be most economically accomplished without
degrading the quality of the product or service. Specifically, value engineering refers to
cost avoidance or cost prevention before production.
b) Design Reviews
Design reviews are planned evaluations of designs, raise questions and generate new
ideas for improvement. In design reviews issues like, product function, conformance to
customer needs, manufacturing costs, value and appearance, environmental conditions
and products testing, reliability and engineering documentations are considered.
4. Improving Productions Processes
Methods for improving production processes include the traditional techniques of
industrial engineering such as methods analysis, work measurement, maintenance with
the help of new concepts like Just – In – Time.

Just – In – Time (JIT)

47

Just – In – Time is a quality and scrap control tool. The basic philosophy behind Just – In
– Time is to produce only units to keep the next work station in operation. Just – In –
Time cannot function if production has a high rate of defects.
5. Improving Quality System
The improvement in the quality system can be achieved with the help of quality audits. A
quality audit is a systematic and independent examination and evaluation to determine
whether quality activities and results comply with planned arrangements and whether
these arrangements are implemented effectively or not.
Quality audits are necessary for several reasons:
 Audits provide benchmarks for determining whether the quality system is complete
 Audits make every one aware the organization is serious about continuous
improvement in quality

BENCH MARKING
Benchmarking is the search for best practices that will lead to superior performance.
Benchmarking helps a company learn its strengths and weaknesses and those of
competitors and incorporate the best practices into its own operations. Benchmarking was
firstly initiated by Xerox whose business products and systems’ division won the
Malcolm Baldrige National Quality award. There are two types of benchmarking:
1. Competitive Benchmarking

48

2. Generic Benchmarking
Competitive benchmarking is usually focuses on products, manufacturing operations and
customer service systems.
The generic benchmarking, evaluates processes or business functions against the best
companies.
In order to be effective, benchmarking must be applied to all facets of a business. For
example, Motorola encourages everyone in the organization to ask, “who is the best
person in my own field and how might I use some of their techniques and characteristics
to improve my own performance in order to be the best (executive, manager, chief,
purchasing agent, designer, etc.) in my class.
The benchmarking process can be described in the following way:
1. Determine which function to benchmark
This focuses on performance and key dimensions of competitiveness. For example, if fast
response is an important dimension of competitive advantage, then processes that might
be benchmarked would include order processing, purchasing, production planning and
product distribution.

2. Identify key performance indicators in measurement like direct link with customer’s
needs and expectations
3. Identify best in class processes. For specific business functions benchmarking might
be limited to the nature of business. For example a bank in one country might be
benchmark the check processing operations of a bank in another country.
4. Meeting the needs or performances. This requires changing organizational systems to
achieve or exceed the performance of the best.
Flowcharts

49

A flowchart is a picture that shows the sequence of steps that are performed. Flow charts
are best developed by the people involved in the process – employees, supervisors,
managers and customers. A facilitator is often used to provide objectivity to ask the right
questions and to resolve the conflicts. The facilitator can guide the discussion b asking
questions such as what happens next? Who make the decision at this point? And what
operation is performed here?
Flowcharts help the people who are involved in the process understand it better and more
objectively. By participating in the development of flow charts workers begin to feel a
sense of ownership in the process and who their suppliers and customers are?
Once flowchart is developed it can be used to identify quality problems as well as areas
for improvement.

Check Sheets
Check sheets help in compilation of data. When designing a process for data collection
one must first ask some basic questions such as,
What question are we trying to answer?
What type of data will we need to answer the question?
Tools for Data Collection and Analysis
There are seven quality control tools that are used for gathering and analysing data for
fact based management. These tools are:
Flowcharts
Check sheets
Histograms
Pareto Diagrams
Cause and Effect Diagram

50

Scatter Diagrams
Control Charts
Types of Data
Data may be attribute or variable. Attributes assume one of two values conforming or not
conforming within tolerance or out of tolerance, complete or incomplete. Attributes data
are collected by counting.
Variables are appraisal in terms of measurable values on a continuous scale, for example,
length, weight or time. Variables data are collected through measurement.

Example
Attributes

Variation

Percent accurate invoices

Time waiting for service.

Number of lost parcels

Number

of

hours

per

week

correcting documents.
Number of complaints

Time to process travel expenses
accounts.

Mistakes per week

Days from order receipt to shipment.

The practice of identifying best practices in industry and thereby
setting goals to emulate them is known as benchmarking. Companies
cannot afford to stagnate; this guarantees a loss of market share to
the competition. Continuous improvement is a mandate for survival
and benchmarking facilitates such fast paced improvement. This
practice

enables

an

organization

improvement.

51

to

accelerate

its

rate

of

Specific steps for benchmarking vary from company to company but
the fundamental approach is the same. One company’s benchmarking
may not work at another organization because of different operating
concerns. Successful benchmarking reflects the culture of the
organization

works

within

the

existing

infrastructure

and

its

harmonious with the leadership philosophy.
Motorola Inc, uses a five step benchmarking model:
1. Decide what to benchmark
2. Select companies to benchmark
3. Obtain data and collect information
4. Analyse data and form action plans, and
5. Recalibrate and start the process again
A primary advantage of the benchmarking practice is that it promotes
a thorough understanding of the company’s own process. Secondly
benchmarking

enables

companies

of

performance

measures

in

different dimensions, each with the best practice for that particular
measure. It is not merely a comparison that is the best for the chosen
measure. Some common performance measures are return on assets8,
cycles time, percentage of on time delivery, percentage of damaged
goods, proportion of defects and time spent on administrative
functions.
Another advantage of benchmarking is its focus on performance
measures and processes, not on the product. Thus benchmarking is
not restricted to the confines of the industry in which the company
resides.

It

extends

beyond

these

boundaries

and

identifies

organizations in other industries that are superior with respect to the
chosen measure. It is usually difficult to obtain data from direct
competitors. However, companies outside the industry are more likely
to share such information. It then becomes the task of management to
52

find ways to innovatively adapt those best practices within their own
environment.

B
E
N
C
H
M
A
R
K
I
N
G

Organizational
Culture of
Empowerment

Strategic Commitment

Motivation through
reward and recognition

SOFT SYSTEM

Performance
Measurement

Training for Technical
Skills

Resources
Commitment

HARD SYSTEM

Figure demonstrates how benchmarking brings the “soft” and “hard”
systems together. Benchmarking is not merely the identification of the
best practices; rather it seeks to determine how such practices can be
adapted to the organization. The real value of benchmarking is
accomplished only when the company has successfully integrated the
identified best practices into its operation. To be successful in this
task “soft” and “hard” systems must “mesh”.
Technological development is another impetus for benchmarking.
Consider the microelectronics industry. Its development pace is so
rapid that a company has no choice but to benchmark. Falling behind
the competition in this industry means going out of business. In this
situation, benchmarking is critical to survive.

53

QUALITY CONTROL IN SERVICE SECTOR
Today service industries dominate our economy. The service sector
accounts for more than 70% of jobs and the number continues to
grow. In service industries not only must the product meet the
fundamental

requirements

of

the

customer

but

the

employee

behaviour must also meet high standards. The total service concept is
a combination of technical and human behavioural aspects.
Let us consider the airline industry. A quantifiable goal is to transport
people between two cities in a desirable time. The achievement of this
is dependent on aircraft design that enables certain speeds to be
attained to cover the distance within the required time and on proper
scheduling of flights. Data on these factors is clearly quantifiable.
However, customer satisfaction is often influenced by factors that are
not so easy to quantify. For instance, the manner in which
stewardesses and ticket agents treat the customers is very important.
Courteous and friendly and warm and caring are not so obviously
quantified. Thus the manner in which the source is performed is an

54

important concern that might not be considered in manufacturing
industries.
Functions performed by industries include education, banking,
governmental services, health care, insurance, marketing, personal
services (hotels & motels), restaurants, travelling and tours, public
utilities (electricity, gas and telephone services) and transportation
(airlines, railroads and buses).
Two parties are involved in providing a service. The one that assists or
provides the service is the vendor, or company and the party receiving
the service is the vendee or customer.
Differences in the Manufacturing And Services Sectors
Basic differences in the manufacturing and service sectors are given
below:
S.

Manufacturing Sector

Service Sector

No.
1.

Product is tangible

2.

Back orders are possible

3.

Producer or company is
the only party involved in
the making of the product
Product can be resold
Customer
usually
provides
formal
specifications
for
the
product

Service consists of tangible and
intangible components.
Services cannot be stored, if not
used, they are lost
Producer and consumer are both
involved in the delivery of the
service
Services cannot be resold
Formal specifications need not to
be provided by the consumer. In
fact in monopolies involving
public utilities such as electricity,
gas, telephone, etc. federal and
state
laws
dictate
the
requirements.
Customer satisfaction is difficult
to quantify because a behavioural
component associated with the
delivery of the service is involved.

4.
5.

6.

Customer acceptance of
the product is easily
quantifiable.

55

7.

Ownership of a product Rendering of a service takes place
changes
hands
at a over an interval of time.
specific point in time.

SERVICE QUALITY CHARACTERISTICS
The quality characteristics are grouped into four categories. They are
given as under:
1. Human Factors and Behavioural Characteristics
Service quality is influenced by the attitude and behaviour of the
provider.

Human

factors

include

intensity,

eagerness

to

help,

thoughtfulness, complacency, courtesy and so on. Some of these traits
can be developed through adequate training; some are inherent in the
individual. Proper screening of employees and appropriate job
assignment are ways to achieve desirable quality characteristics. A
primary source of customer complaint is discourteous behaviour.
2. Timeless Characteristics
A service that is not used in a given span of time cannot be stored for
later use. A hospital with empty beds during certain days of a month
cannot save them for use in the following month. Thus the timelines
with which a service is performed is critical to customer satisfaction.
How long did the customer have to wait in line to cash a cheque?
Characteristics related to timeliness are categorized by the service
phase with which they are associated. Categories may include the
time to order the service, the waiting time before the service is
performed, the time to service and the post service time.
3. Service Nonconformity Characteristics
These characteristics deal with deviation from target performance
levels; non-conformity is a deviation from the ideal level. Examples of
such characteristics include the number of errors in processing per

56

100 vouchers by bank employees, the number of data entry errors per
1000 key strokes by a data entry operator, the number of billing
errors per 100 accounts by a utility company and so on. The target
performance level for these examples is zero non conformities. The
goal of the service organization is to achieve the target level, thus
meeting customer expectations and then exceed it through quality
improvement measures.
4. Facility Related Characteristics
The physical characteristics of the facilities associated with a service
and its delivery can impact customer satisfaction. The waiting area in
a bus station and the availability of such amenities as a swimming
pool in a hotel are examples of quality characteristics for physical
facilities that are involved in providing a service. The appearance of a
waiter or waitress, an insurance agent is attributes of individuals
performing a service.

DEMING'S 14 POINTS FOR MANAGEMENT
The focus of Deming's philosophy is management. Management can solve a major
proportion of problems. Only a minority of problems can be attributed to suppliers or
workers. So in Deming's view, what must change is the fundamental style of
management.
In Deming's ideal organization, workers, management, vendors, and investors are a team.
However, without management commitment, the adoption and implementation of a total
quality system will not succeed. It is management who creates the culture of workers
"ownership" and their investment in the improvement process management who creates
the corporate culture that enables workers to feel comfortable enough to recommend

57

changes. It is management who develops the long-term relationship with vendors. And
finally, it is management who convinces investors of the long-term benefits of a quality
improvement program.
Deming's 14 points for management provide the necessary sense of direction. The
adoption of these points will sustain productivity and competitiveness of the company in
the long run.
Deming's Point 1
Create and publish to all employees a statement of the aims and purposes of the
company or other organization. The management must demonstrate, constantly their
commitment to this statement.
This principle stresses the need to create long-term strategic plans that will steer the
company in the right direction. Mission statements should be developed and clearly
expressed so that everyone in the organization understands them. This includes not only
everyone in the organization but also vendors, investors, and the community at large.
Mission statements address such issues as the continued improvement of quality and
productivity, competitive position, stable employment, and reasonable return for the
investors.
Deming's Point 2
Learn the new philosophy, top management and everybody.
Everyone must adopt the new attitude. Quality consciousness must be every thing to
everyone. Previously acceptable levels of defects should be abandoned; the idea that
improvement is a never-ending process must be embraced wholeheartedly.
Human beings are resistant to change. Managers who have been successful under the old
system where certain levels of defects were acceptable may find it difficult to accept the
new philosophy. Overcoming this resistance is a formidable task, and it is one that only

58

management can accomplish. The idea is not only to continually reduce defects but also
to address the needs of the customer.
Deming's Point 3
Understand the purpose of inspection, for improvement of processes and reduction of
cost.
Quality has to be designed into the product; it cannot be inspected into it. Creating a
"design for manufacturability" is imperative because producing the desired level of
quality must be feasible. Inspection merely separates the acceptable from the
unacceptable. It does not address the root cause of the problem — that is, what is causing
the production of nonconformities and how to eliminate them. The emphasis is on defect
prevention, not on defect detection.

Deming's Point 4
End the practice of awarding business on the basis of price tag alone.
Many companies, as well as state and federal governments, award contracts to the lowest
bidder as long as they satisfy certain specifications. This practice should cease.
Companies should also review the bidders' approaches to quality control. What quality
assurance procedures do the bidders use? What methods do they use to improve quality?
What is the attitude of management toward quality? Answers to these questions should be
used, along with price, to select a vendor, because low bids do not always guarantee
quality.
Deming's Point 5
Improve constantly and forever the system of production and service.
In Deming's philosophy, companies move from defect detection to defect prevention and
continue with process improvement to meet and exceed customer requirements on a

59

never-ending basis. Defect prevention and process improvement are carried out by the
use of statistical methods. Statistical training is therefore a necessity for every one and
should be implemented on a gradual basis.
Deming Cycle
The continuous cycle of process improvement is based on a scientific method originally
called the Shewhart cycle after its originator Walter A. Shewhart. He also developed
control charts. In the 1950s, the Japanese renamed it the Deming cycle. It consists of four
basic stages—plan, do, check, and act (the PDCA cycle).
Plan Stage: In this stage, opportunities for improvement are recognized and operationally
defined. A framework is developed that addresses the effect of controllable process
variables on process performance. Since customer satisfaction is the focal point, the
degree of difference between customer needs satisfaction
Do Stage: The theory and course of action developed in the plan stage is put into action
in the do stage. Trial runs are conducted in a laboratory or prototype setting.
Feedback is obtained from the customer and from the process.
Check Stage: Now the results are analyzed. Is the difference between customer needs
and process performance reduced by the proposed action? Are there potential drawbacks
relating to other quality characteristics that are important to the customer?
Act Stage: In the act stage, a decision is made regarding implementation. If the results of
the analysis conducted in the check stage are positive, the proposed plan is adopted.
Customer and process feedback will again be obtained after full-scale implementation.
Such information will provide a true measure of the plan's success. If the results of the
check stage show no significant improvement, alternative plans must be developed, and
the cycle continues.
Deming's Point 6

60

Institute training.
Employee training is integral to proper individual performance in the extended process
setting. If employees function in accordance with the goals of the company, an
improvement in quality and productivity results. This in turn reduces costs and increases
profits.
Employees are the fundamental assets of every company. When employees are hired,
they should be carefully instructed in the company's goals in clear-cut operational terms.
Merely stating that the company supports a total quality program is not sufficient.
Instead, employees must know and buy into the company's long-term goals.
Understanding these goals is essential to performing adequately. Employees' individual
goals may not always be compatible with those of the company. For example, an
employee's desire to produce 50 items per day may not be consistent with the company's
goal of defect-free production. Instruction enables the employee to understand what his
or her responsibilities are for meeting customers' needs.
Deming's Point 7
Teach and institute leadership.
Supervisors serve as vital links between management and (he workers. Since there is
usually no direct contact between these two groups, supervisors have the difficult job of
maintaining communication channels. Thus, they must understand both the problems of
the workers and top management's goals. Communicating management's commitment to
quality improvement to the workers is a key function of supervisors.
Supervisors are in the best position to identify common causes inherent to the system,
causes for which the workers should not be blamed. It is management's responsibility to
minimize the effects of common causes. Special causes, such as poor quality of an
incoming raw material, improper tooling, and poor operational definitions should be

61

eliminated first. Identification of these special causes can be accomplished through the
use of control charts.

Deming's Point 8
Drive out fear. Create trust. Create a climate for innovation.
Functioning in an environment of fear is counterproductive, because employee actions
are dictated by behaviour patterns that will please supervisors rather than meet the longterm goals of the organization. The economic loss associated with fear in organizations is
immense. Employees are hesitant to ask questions about their job, the methods involved
in production, the process conditions and influence of process parameters and other such
important issues.
A fear filled organization is wasteful. The process of eliminating fear starts at the top.
Deming's Point 9
Optimize towards the aims and purposes of the company the efforts of teams, groups,
and staff areas.
The presence of barriers impedes the flow of information, prevents each entity in the
extended process from perceiving organizational goals. The barriers may be internal or
external. Poor communication is often a culprit in barrier creation. Perhaps top
management fails to model open and effective communication.
Deming's Point 10
Eliminate exhortations for the workforce.

62

Numerical goals such as a 10% improvement in productivity set arbitrarily by
management have a demoralizing effect. Rather than serving to motivate, such standards
have the opposite effect on morale and productivity.

If the process is stable, the employees have no means of achieving the goal unless
management changes the process or the product. Management has to come up with a
feasible course of action so the desired goal can be achieved. Failing to do so will lower
morale and productivity. By taking such an action, management is basically shirking its
responsibility. Hence, goals should be set by management in a participative style, and
procedures for accomplishment should be given.
Management should demonstrate its commitment to the never-ending process of quality
improvement. Rather than providing slogans, they should describe precisely.
Deming's Point 11
a) Eliminate numerical quotas for production. Instead, learn and institute
methods for improvement.
b) Eliminate M.B.O. (management by objectives). Instead, learn the capabilities of
processes, and how to improve them.
Work standards are typically established by someone other than those who perform the
particular job in question. They are based on quantity without regard to quality.
According to Deming, setting such work standards guarantees inefficiency and increases
costs. The numerical quota defined by a work standard may derail implementing the
Deming improvement cycle because people naturally strive to meet the quota rather than
to produce acceptable goods.

63

Deming's Point 12
Remove barriers that rob people of pride of workmanship.
A total quality system can exist only when all employees synergistically produce output
that conforms to the goals of the company. Quality is achieved in all components of the
extended process when the employees are satisfied and motivated, when they understand
their role in the context of the organization's goals, and when they take pride in their
work. It is management's duty to eliminate barriers that prevent these conditions from
occurring. A direct effect of pride in workmanship is increased motivation and a greater
ability for employees to see themselves as part of the same team—the team that makes
good things happen.
Factors That Cause a Loss of Pride
Several factors diminish worker pride. First, management may not treat employees with
dignity. Perhaps they are insensitive to workers' problems (personal, work, or
community). Happy employees are productive, and vice versa. Happy employees don't
need continuous monitoring to determine whether their output is acceptable.
Second, management may not be communicating the company's mission to all levels.
How can employees help achieve the company's mission if they do not understand what
that mission is?
Third, management may assign blame to the employees for failing to meet company
goals when the real fault lies with management. If problems in product output are caused
by the system (such as poor-quality raw materials, inadequate methods, or inappropriate
equipment), then employees are not at fault and should not be penalized.

Deming's Point 13
Encourage education and self-improvement for everyone.

64

Deming's philosophy is based on long-term, continuous process improvement. To meet
this goal, the organization's most important resource, its people, have to be motivated and
adequately trained. This is the only way the company can survive in today's highly
competitive business environment. Management must commit resources for education
and retraining. This represents a sizable investment in both time and money. However, an
educated workforce, with its eye on future needs, can safeguard improvements in quality
and productivity and help the company maintain a competitive position.
Deming's Point 14
Take action to accomplish the transformation.
Point 14 involves accepting the Deming philosophy and committing to seeing its
implementation in the extended process. A structure must be created and maintained for
the dissemination of the concepts associated with the first 13 points. Responsibility for
creating this structure lies with top management. Besides being totally committed to the
idea of quality, management must be visionary and knowledgeable as to its potential
impacts, and they must be in it for the long run.
For the implementation to succeed, people must be trained in statistics at all levels of the
organization. A quality company requires statistical assistance at every level.

IMPLEMENTATION OF TQM
The TQM implementation process begins with senior management’s
and most important the CEO’s commitment. The importance of the
senior management role cannot be overstated. Leadership is essential
during every phase of the implementation process and particularly at
the start.

65

Timing of the implementation process can be very important. Is the
organization ready to embark on the total quality journey? There may
be some foreseeable problems e.g. reorganization, interpersonal
conflicts, etc. These problems may postpone implementation to a more
favorable time.
The next step is the formation of the quality council. The membership
and duties follow.
QUALITY COSTS
One measure of the performance of the total quality system is the cost
associated with it. Careful identification, measurement and analysis of
cost as a function of time aids in tracking the impact of an effective
quality control system.
The benefits of a quality system, as measured by the total quality
costs, may be realized in the long run rather than in the short run.
An American Society for Quality Control has defined four major
categories for quality costs, which are as under:
1. Prevention Costs
Prevention costs are incurred in planning, implementing and
maintaining

a

quality

system.

They

include

salaries

and

development costs for product design, process and equipment
design, process control techniques, information system design and
all other costs associated with marking the product right the first
time.

66

Costs associated with education and training are included in this
category. Other such costs include those associated with defect –
cause and removal, process changes and the cost of quality audit.
2. Appraisal Costs
Appraisal costs are those costs associated with measuring,
evaluating, or auditing products, and components or purchased
materials to determine their degree of conformance to the
specified standards. Such costs include dealing with the inspection
and test of incoming materials as well as product inspection and
testing at various phases of manufacturing. Other costs in this
category include the cost of calibrating and maintaining measuring
instruments and equipment.
3. Internal Failure Costs
Internal failure costs are incurred when products, components,
materials and services fail to meet quality requirements prior to
the transfer of ownership to the customer. These costs would
disappear if there were no non-conformities in the product.
Internal failure costs include scrap and rework costs for the
materials, labour and overtime associated with production. The
cost of correcting non-conformities as in rework also is the internal
cost. The cost of lost production time is also the internal failure
cost.
4. External Failure Costs
External failure costs are incurred when the product does not
perform satisfactorily. If no non-conformity units were produced
this cost would vanish. Such costs include those due to customer
complaints,

which

include

the

67

costs

of

investigation

and

adjustments. Warranty charges i.e. failure of a product within the
warranty time and product liability costs also fall under this
category.
A misconception that has existed among businesses is the notion
that

quality

decreases

productivity.

On

the

contrary,

the

relationship between the two is positive i.e. quality improves
productivity. Making a product right the first time lowers total
costs and improves productivity.
In fact, doing it right the first time increases the available capacity
of the entire production line. Valuable resources – people,
equipment, material, time and effort – can be utilized for added
production of defect free goods or services. The competitive
position of the company is enhanced in the long run and an
improvement is observed in profits.

68

MANAGEMENT OF QUALITY
Management of the total quality system is achieved through the
functions of; planning, organizing, staffing, directing and controlling.
The major objectives of the management are to integrate all processes
and functional units to meet the goals of the company. Management is
responsible for the prevention of non-conformities and their goal is to
design, manufacture, and maintain the product or the service at the
least possible cost while still meeting all customer requirements.
Presently,

companies

are

finding

out

that

meeting

customer

requirements is not always enough to remain competitive. Companies
have to satisfy their customers to such a degree that they continually
repurchase the product. This feat can be achieved only through an
organized and thorough evaluation and analysis of performance data
integrated into the design phase.
FUNCTIONS OF MANAGEMENT IN THE QUALITY SYSTEM
The management may play a decisive role in the implementation of
the quality system. The implementation is carried out at their
functional levels. they are as under:

1. Planning for Quality
In the planning process, the company considers its quality mission
and objectives as its key qualities as perceived by the consumer, its
market

commitments

and

its

available

production facilities.

69

human

resources

and

Quality planning may be categorized as administrative plans and
product oriented plans. Administrative plans deal with the operational
aspects of the company. While product oriented plans, on the other
hand may cross-functional lines such as, marketing, product and
process design and engineering.
2. Organizing For Quality
An organizational structure is created to establish lines of authority
and responsibility. The major activities involved in organizing for
quality

consists

of

defining

quality-related

activities

and

the

interrelationship between them, assigning responsibility for each of
the tasks and sub dividing tasks down to the worker level.
3. Staffing for Quality
An organization should staff its managerial positions with candidates
certified in the appropriate quality area. Additionally, a company can
send its personnel to workshops on quality and can give them
incentives to become certified (either through salary increase,
promotion

or

acknowledgement

through

awards).

Motivating

employees to produce a quality item is critical to the success of the
quality program.
4. Directing for Quality
Once quality has been incorporated into the design of the product, the
production phase takes measures to ensure that the produced item
conforms to the design specifications. The top management ensures
about the implementation of the set goals. Certified and trained
inspectors inspect the activities and report to the top management.
5. Controlling for Quality

70

The control aspects occur during the production and postproduction
phases. The objective is to determine out of control process conditions
and nonconformance as early in the production phase as possible. To
achieve this, procedures are established to obtain relevant process
information on a timely basis.
Another important concern deals with controlling the costs of quality.

TOTAL QUALITY ENVIRONMENTAL MANAGEMENT
In recent years, we have witnessed the emergence of many national
regional standards in the environmental management field. Some
companies have long felt a social responsibility to operate and
maintain safe and adequate environmental, regardless of whether
outside standards required it.
With the concern for protection of the environment that is mandated
in regional and national standards, standards need to be developed in
environmental management tools and systems. British Standards
Institute’s BSI 7750 Standards on environmental management is one
such

example,

the

European

Union’s

Echo

Label

and

Eco

Management and Auditing scheme are other examples. Similarly, in
the United States, technical environmental standards have been

71

developed and published that address the testing and monitoring
associated with emission and effluent controls.
The International Organization for Standards (ISO) based in Geneva,
Switzerland, has long taken the lead in providing quality management
standards. Its ISO 9000 standards have become a benchmark for
quality management practice.
In addition to this ISO 14000 referring Environmental Management
Standards and deals with Environmental Management Systems for the
day to day operations that have an impact on the environment. This
will address issues such as Environmental Management System,
Environmental Auditing, Environmental Performance Evaluation Life
Cycle Assessment and Environmental Labeling Environmental Aspects
in Product Standards.
Environmental Management is a regulation based and compliance
driven system. These standards are therefore not product standards.
Environmental Management Systems and Environmental Auditing
span a variety of issues. These include top management commitment
to continuous improvement, compliance and pollution prevention,
creating

and

implementing

environmental

policies,

setting

appropriate targets and achieving them.
Several benefits will accrue from the adoption of the Environmental
Management System Standards. First and the foremost is the
worldwide focus on environmental management that the standards
will help to achieve. At the commercial level, ISO 14000 will have an
impact on creating uniformity in national rules and regulations, labels
and methods. They will minimize trade barriers and promote a policy
that is consistent.
72

QUALITY IMPROVEMENT TOOLS
The quality improvements tools are as under:
1. Collection/ Stratifying of Data
This exercise helps in analyzing the problem and is accomplished
by:
a) Presentation of data Sheets – To collect information on large
number of variables.
b) Checking of Sheets – Important to note
 Stating the full title of the data to be collected and time period
covered.
 Checking that sheets are uniform
 Writing is kept to a minimum
Advantages:
 Provides visual Impact
 Shows a picture of the Distribution
c) Run Chart or line graph
This illustrates how a process change over time, it is an effective
tool for presenting data.

Advantages:
 Provides visual Impact
 Cycle pattern can be easily seen

2. Flow Diagram
The simplest way of describing or mapping a process is to draw a
flow chart used for planning action. The flow chart maps the stages

73

of a process from starting point to its completion point. Each action
of the process, each decision taken and arrows that point forward
and at times point back to an earlier stage in the process. The
following steps should be followed to construct a process flow
chart:
 Identify the subject of the flow chart.
 Determine the starting and end points.
 Stratify the tasks into the smallest possible sub tasks and list
them.
 Measure the time, distance or quantity for each sub task.
 Calculate and record the frequency and time for each sub task.
 Create the flow chart by utilizing the symbol for each task.
 Indicate a legend, which defines the symbols used.

3. Variation and Distribution
Variation is a natural phenomenon and is universal. It follows some
distribution patterns, which makes it possible to predict probability
of occurrence of events. The variation may be represented by:
a) Quincunx: This is a tendency of variations due to different
causes to be in different directions thereby minimizing the effect
of one another.
b) Frequency distribution Diagrams or Histogram: It is a
diagram showing the frequency of occurrence of a given
number. Histogram is a bar chart showing the distribution
pattern of observations grouped in convenient class intervals
and arranged in order of magnitude.
Procedure:
 Collect data.

74

 Arrange all values in an ascending order.
 Divide the entire range of values into a convenient number of
groups, each representing an equal class interval.
 Draw X – Axis and Y – Axis and decide appropriate scales for the
groups.
 Draw bars representing the frequency for each of the groups.
 Provide a suitable title to the Histogram.
 Study the pattern of distribution and draw conclusions.

4. Graphs and Charts
These are the most important tools of process control. Control
charts are visual representation of variations in the selected
parameters. Control charts guide one that when adjustments must
be made.

5. Quality Related Tools and Techniques
A. Brain Storming for generating ideas
It is away of getting as many ideas as possible on a problem or a
solution in the shortest possible time. It works most effectively
when there is a group of people responding within the following
framework:
 Do not discuss – just concentrate on writing up ideas as
quickly as possible without criticizing any thing that is said.
 Build on others suggestions – by using the thoughts of
others.
 Go for Quality – by trying to write up as many ideas as possible
within a period of time say 5 or 10 minutes.

75

 Be Imaginative – quite often the most creative solutions come
from initially draft ideas, avoid creating an environment when
people are inhibited from putting forward ideas because others
criticize or laugh at them.
B. Cause and Effect Diagram
A cause and effect diagram is a tool that shows systematic
relationship between a result or a symptom or an effect and its
possible causes. This tool was devised by Dr. K. Ishikawa and is
also known as Ishikawa diagram.
There are flow type diagram based on defining the probable cause
of a problem and the identifying the likely major variables or
causes of that problem under the four M approach – materials,
machines, manpower, and methods. When the diagram is complete
resembles the skeleton of fish that is why it is also referred as Fish
Bone Diagram.

QUALITY

SYSTEM



LIKE

ISO

9000

FOR

A

CHEMICAL

INDUSTRY
The quality of chemical production processes and products is largely
influenced by the automation technology. Contributions from process
control and instrumentations are, therefore expected when certifying
76

quality management systems for chemical production. The main
points that should be considered when certifying quality management
systems for chemical production processes are:
 Methods for selection and technical specifications of the process
control functions/equipment, which controls or tests the product
quality
 Recommendations for planning, installation and maintenance
The concept is an economically sound conversion of ISO 9000
matched to the requirements of chemical production processes.
PROCESS

CONTROL

AND

INSTRUMENTATION

IN

THE

CHEMICAL INDUSTRY
Process control and instrumentation with which terms such as
measurement, control, monitoring, output, display and recording have
a long tradition in chemical production process and are now
indispensable comments of modern production processes. The quality
of chemical products is not achieved by testing; process control and
instrumentation are used to direct the production processes such that
the products are generated with the desired quality.
The

following

are

the

characteristics

of

process

control

and

instrumentation in chemical production plants.
Complex

interconnection

of

individual

devices

into

complex

measurement and automation system i.e. process control equipment,
consists of detectors, sensors, transmitters, signal processing, control,
displays, input devices, recorders and final control, displays, input
devices, recorders and final control elements as applicable.
Fixed installation or process control equipment usually covering the
process devices, switch room and process control rooms.
77

The specialists of process control and instrumentation in the chemical
industry are greatly interested in exchanging ideas and experiment
and in representing interests in the field of measurement, control and
automation.
THE PROBLEM IN CHEMICAL INDUSTRY
Companies in the chemical industry are being increasingly requested
by their customers to certify their Quality Management Systems. This
is carried out on the basis of series of ISO 9000 standards. The
following elements are generally relevant to process control and
instrumentation.
Process quality control
Test Equipment
TARGETS
The concept described pursues the following targets:
The process control equipment should be systematically categorized
with respect to functions for quality testing and generation, thus
producing a method with which the series or standards ISO 9000 can
be interpreted uniformly for process control equipment in the
chemical industry.
The concept is chiefly envisaged for process control equipment
installed as fixed equipment in chemical production plants.

78

QUALITY STANDARDS
Quality Standards may be defined as a criterion that how a product or service should be
assessed concerning three aspects namely:

 Quality
 Performance
 Environmental Impacts
Products and services are standardized to ensure quality, performance and safety to both
consumers and the environment.
As for consumer, health and safety, quality standards, be they pharmaceuticals or food
products, in home appliances or consumer products, promote and encourage improved
quality of life. On the contrary, if goods and products, which are consumed by people, are
of substandard, they may pose a health hazard to consumers and endanger their lives.
Local brands of gas heaters of poor quality are an obvious example of this. These gas
heaters emit unburned methane gas in the atmosphere and causes suffocation. In winter
every year these gas heaters claim lives of many. The problem can partly be standards in
gas heaters.
Another important example in this regard is that of unclean and contaminated drinking
water. It has been reported that about 80 percent diseases are waterborne and 40 percent
deaths are attributed to the use of poor quality drinking water. This is largely because
there exists no enforceable water quality standards in the country whereby its quality
could be assessed.
October 14 is celebrated all over the world by governments, standardization bodies,
citizens, consumers and consumer groups as the World Standards Day. The purpose

79

behind it was to stress the need for quality and standardization of goods, products and
services. The Day reminds the establishment of International Organization for Standards
(ISO) which was established in London on October 14, 1944.
Quality Standards are also essential for improving environment because quality goods
and services tend to ensure maximum environment protection. It is for this reason that
due importance is given in the implementation of the Quality Standards.
For these reasons, much stress is laid on quality standards in developed countries and the
consciousness of having quality standards is also increasing in many developing
countries.
Pakistan lags far behind in this respect from many developing countries. As a result the
markets are flooded with substandard and poor quality goods and products. At present,
the only standardization body operating in the country is Pakistan Standards and Quality
Control Authority (PSQCA). It was established in year 2000 under the Pakistan Standards
and the Quality Control Authority Act 1996.
Question: What is ISO 9000?
Answer: ISO 9000 is a series of International Standards for Quality Systems. They
specify requirements and recommendations for the design and assessment of a
management system, the purpose of which is to ensure that suppliers provide products
and services, which satisfy specified requirements. These specified requirements may be
specific customer requirements, where suppliers are contracted to supply certain products
and services, or may be the requirements of a particular market as determined by the
supplier.
The requirements and recommendations apply to the organizations that supply the
product or service and hence affect the manner in which the products and services are
designed, manufactured, installed, delivered etc. They are standards, which apply to the

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management of the organization, and only the management can and should decide how it
will respond to these requirements and recommendations.
In broader sense:
 It is set of written standards laying down a Quality System.
 It defines the basic elements of the system through documentation.
 It creates a Quality System rooted in accordance with the customers’
requirements.
 It focuses on the process assuming that Quality Process makes Quality System.
 It lets the organization to decide the method for itself but it is then to be
consistently applied.
 A system approach to Quality Management.
 It is not a solution it is a catalyst.
 It is documenting the problem solving approach system.
 It wants an organization to keep records of what it does what it say.
Question: Why is ISO 9000 is important?
Answer: ISO 9000 is important internally and externally.
Internally it is important as it:
 Provides good platform for continuous quality improvement.
 Vehicle to hold quality improvement gains.
 Provide methods for involving non – manufacturing areas in quality and quality
improvement.
 Employees’ confidence increases.
 Job satisfaction, less confusion, elimination of panic.
Externally it is important because:
 Customer confidence increases.
 Competitive edge.

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 Number of countries insist ISO 9000 registration as pre condition for business i.e.
export.
Question: What are the main advantages of ISO 9000?
Answer: The main advantages of ISO 9000 are as under:
 Strengthens system discipline and the consistency in product quality.
 Motivation is improved, cooperative workmanship.
 International recognition of ability.
 Necessary pre requisite for export.
 Improves organization’s efficiency.
 Goal Orientation.
 Team building.
 Role clarity and openness.
 Developing to marketing, after sales service, recruitment of personnel and
training.
 Reduce wastage, quality cost, rejection rates, scrap, rework, and customer
complaints.
 Provides good platform for continuous quality improvement.
 Better product design.
 Efficient utilization of resources and higher productivity.
 Elimination of bottlenecks in production and tension free environment leading to
good human relations.
Question: What are the weaknesses of ISO 9000?
Answer:
ISO 9000 alone does not guarantee quality.
No provision for continuous quality improvement, reducing cycle time, cut inventories,
speed of delivery, customer satisfaction, training of employees, empowering workers,
bench marking, selling, etc.

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Question: What ISO 9000 expects from an organization?
Answer: The expectations of ISO 9000 from an organization are:
 Is the organization’s quality system adequate?
 Does the organization follow its quality system?
 Does the organization audit itself?
 Is there evidence of documented quality system audits with evidence of resulting
corrective action?
 Are management reviews of the quality system conducted and acted upon?
Question: How ISO 9000 is implemented?
Answer: Formally ISO 9000 is implemented by the involvement of:
 Organizational Management
 Customers of the Organization
 An independent third party for the purpose of verification
Question: What are the perspectives of ISO 9000?
Answer: The main perspectives of ISO 9000 are:
 It is not an end point
 It is a high value activity
 It tells us where we are now
 It is a starting point for the continuous quality improvement.
Question: Describe the Parts of ISO 9000?
Answer: The ISO 9000 series comprises of two basic types of standards they are:
 Those addressing Quality Assurance
 Those addressing Quality management
The Quality Assurance Standards are designed for contractual and assessments purpose
and are ISO 9001, ISO 9002 and ISO 9003.

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The Quality Management Standard is ISO 9004 together with all its parts and is designed
to provide guidance for companies developing and implementing quality systems.
The ISO 9000 series currently consists of the following published and planned
documents.
ISO 9000 – 1 - - - - > Quality Management and Quality Assurance Standards –
Guidelines for selection and use
ISO 9000 – 2 - - - - > Guidelines for the application of ISO 9001, ISO 9002 and ISO
9003.
ISO 9000 – 3 - - - - > Guidelines for the application of ISO 9001 to the
development, supply and maintenance of software.
ISO 9000 – 4 - - - - > Guide to dependability program management.
ISO 9001 - - - - > Quality Systems – Model for Quality Assurance in design,
development, production, installation and servicing.
ISO 9002 - - - - > Quality Systems – Model for Quality Assurance in production and
installations.
ISO 9003 - - - - > Quality Systems – Model for Quality Assurance in final inspection and
test.
ISO 9004 – 1 - - - - > Quality Management and Quality System elements – Guidelines.
ISO 9004 – 2 - - - - > Quality Management and Quality System elements – Guidelines for
services.
ISO 9004 – 3 - - - - > Guidelines for processed materials.
ISO 9004 – 4 - - - - > Guidelines for Quality Improvement.
ISO 9004 – 5 - - - - > Guidelines for Quality Plans.
ISO 9004 – 6 - - - - > Guide to Quality Assurance for Project Management.
ISO 9004 – 7 - - - - > Guidelines for Configuration Management.

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Books For Reference
Subject: Total Quality Management
6. Quality Control
By Dale H. Besterfield
7. Fundamentals of Quality Control & Improvement
By Amitava Mitra
8. Practice Approach in Quality
By Arnaldo Hernansez

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9. Quality Systems Hand Book
By David Hoyle
10.

Total Quality Management & ISO 14000
Dr. K.C. Arora

86

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