To Study Quality Management
System for Reduction of Quality Cost
Dr. Vinod N. Sayankar
Director, Sankalp Business School, Vadgaon
( Bk) Ambegaon (Bk) Pune - 41
*Corresponding Author E-mail: vn_sayankar@yahoo.com
ABSTRACT:
Today’s challenge for business is to produce quality
products in an organized and capable way. Quality is one of the four key
objectives in operations management along with cost and delivery of goods.
Quality goods can provide an organization with competitive edge. Good quality
can reduces costs due to rework, scrap and product or shipment returns. Quality
goods increases productivity and hence profits, other measures of progress such
as brand image and product image. The total cost of quality can be minimized by
observing the relationship between cost of quality and degree of conformance to
customer requirements. Reduction in cost of quality can give the organization
tangible and intangible benefits.
KEY WORDS: Good quality, productivity, delivery of
goods, cost of quality.
Organizations globally are
growing increasingly aware of the competitive potential of quality. Quality in business, engineering and manufacturing has a
practical interpretation as the non-conformity
or conformity of something. Production department might measure the conformance quality, or degree to
which the product was produced correctly. In the present economic and political
climate even high standards are demanded for getting quality products. Adoption
of atomization in manufacturing processes organizations are benefited for
producing quality products.
There are five aspects of quality in a business context:
1. Production - producing something
2. Checking - confirming that
something has been done correctly
3. Quality Control -
controlling a process to ensure that the results are predictable
4. Quality Management –
directing an organisation so that it optimises its performance through analysis and improvement
5. Quality Assurance –
obtaining confidence that a product will
be satisfactory
Managing quality is fundamental to any activity and
having a clear understanding of the five aspects, measuring performance and
taking action to improve is essential for survival and growth to an
organizations. The common element of the business definitions is quite that the
quality of a product or service refers to the perception of the degree to which
the product or service meets the customer's expectations.
Evolution of Quality
Management:
In the early 1900s , F. W. Taylor , the ‘Father of Scientific
Management’ emphasised on quality by including
product inspection and gauging in his list of fundamental areas of
manufacturing management. In 1924, W. Shewhart introduced statistical control charts to monitor
production. Around 1930, H.F. Dodge and H.G. Roming
introduced tables for acceptance sampling. In the mid 1950s, Armand Fiegen Baum Proposed total quality control which enlarged
the focus of quality control from manufacturing to include product design and
incoming raw material.
The business meanings of quality have developed over time. Some important interpretations
are given below:
1. American Society for
Quality :In technical usage, quality can have two meanings:
a. The characteristics of a product or service that bear on its
ability to satisfy stated or implied needs;
b. A product or service free of deficiencies
2. W. Edwards Deming:
Concentrating on "the efficient production of the quality that the market
expects, and he linked quality and management: "Costs go down and
productivity goes up as improvement of quality is accomplished by better
management of design, engineering, testing and by improvement of processes.
3. Peter Drucker:
Quality in a product or service is not what the supplier puts in. It is what
the customer gets out and is willing to pay for.
According to Deming, understanding customers and
suppliers was crucial to planning for quality. He advocated continues
improvement of both products and production processes through better
understanding of customer requirements which is the key to capturing world
market. In the manufacturing industry it is commonly stated that “Quality
drives productivity”. Improvement in
productivity is a source of greater revenues. However, this has not been the
case historically, and in the early 19th century it was recognized that some
markets, such as those in Asia, preferred cheaper products to those of quality.
Inspection, which is what, quality insurance usually means, is historical,
since the work is done. The best way to think about quality is in process
control. If the process is under control, it might not necessary of inspection
in the process cycle.When modern quality techniques
are applied correctly to business, engineering, manufacturing or assembly
processes, quality of products gets improved. These in fact improve customer
satisfaction, generation of lower defects/errors and lead time. So modern
quality has the characteristic that it creates and-based benefits.
One view of quality is that it is defined entirely by the
customer or end user, and is based upon that person's evaluation of his or her
entire customer experience. The customer experience is defined as the aggregate
of all the interactions that customers have with the company's products and
services. For example, any time one buys a product, one forms an impression
based on how it was sold, how it was delivered, how it performed, how well it
was supported etc.
Quality control:
It is a process by which
entities review the quality of all factors involved in production. This
approach places an emphasis on three aspects
1. Elements such as controls,
job management, defined and well managed processes, performance and integrity
criteria, and identification of records
2. Competence, such as
knowledge, skills, experience, and qualifications
3. Soft elements, such as
personnel, integrity, confidence, organizational culture, motivation, team
spirit, and quality relationships.
Quality control emphasizes
testing of products to uncover defects and reporting to management who make the
decision to allow or deny product release, whereas quality assurance attempts
to improve and stabilize production to avoid, or at least minimize, issues
which led to the defects in the first place. Total quality control", also
called total quality management, is an approach that extends beyond ordinary
statistical quality control techniques and quality improvement methods. It
implies a complete overview and re-evaluation of the specification of a
product, rather than just considering a more limited set of changeable features
within an existing product. If the original specification does not reflect the
correct quality requirements, quality cannot be inspected or manufactured into
the product. Total Quality Management (TQM) refers to management methods used
to enhance quality and productivity in business organizations. TQM is a
comprehensive management approach that works horizontally across an
organization, involving all departments and employees and extending backward
and forward to include both suppliers and customers.
Quality Management System:
Quality management is
cross-functional in nature and involves the entire organization. The
vital factor of a quality organization is the concept of the customer and
supplier working together for their mutual benefit. A Quality Management System
can be defined as:
“A
set of co-ordinate activities to direct and control an organization in order to
continually improve the effectiveness and efficiency of its performance.”
A Quality Management System enables an organization to
achieve the goals and objectives set out in its policy and strategy. It
provides consistency and satisfaction in terms of methods, materials,
equipment, etc, and interacts with all activities of the organization,
beginning with the identification of customer requirements and ending with
their satisfaction, at every transaction interface.
A good Quality Management System will:
1. Meet customers’ expectations
2. Involvement of staff
3. Improve process control
4. Reduction in waste
5. Increase market share
6. Facilitate training
7. Raise morale
Cost of Quality:
a. Prevention
costs: These costs are associated with
preventing defects before it occurs. These costs can be reduced by - Quality
planning, Product review, Training to the employees , Collecting data of
quality , Data Analysis , charting of
quality performance and taking quality improvement projects.
b. Appraisal
costs: These costs are incurred in assessing the level of quality .These costs
can be reduced by - Incoming material inspection, Process inspection, Final
goods inspection, Establishing quality laboratories
c. Costs of
internal failure: These are the results
from defects that are observed during
processing . These costs can be reduced by – Monitoring rework, minimizing
retesting and reducing waiting time.
d. Costs of
external failure : These costs are those
when a defect is observed after the
delivery of goods at their point.These costs can be
reduced by – Market complaint analysis , controling
returned goods
RESULTS:
Analysis 1: Awareness
about problem/ defect occurrences:
The data was obtained from production department
employees about the awareness about problem observed/occurred during the
processing of material. The data was analyzed and tabulated as follows.
|
Opinion |
Total |
|
Yes |
100.00 % |
|
No |
0.00 % |
The graphical presentation of data analysis is given
below.
From the above analysis it was observed that –
1. 100.00 % respondents of production department were
said that training is needed about problem / defect generation.
2. 0.00 % respondents of production department were
said that training is needed for non-occurrence of defects and problems.
From the observations 1 to 2, it was interpreted that
awareness through training is needed for understanding the problem and
prevention of defect generation.
Analysis 2: Collections for data of
investigation/ trend analysis:
The data was obtained from quality control and
production department employees about the need for collections of data of
investigation and trend analysis for reducing the cost of quality.
The data was analyzed and tabulated as follows.
|
Opinion |
Total |
|
Yes |
100.00 % |
|
No |
0.00 % |
The graphical presentation of data analysis is given
below.
From the above analysis it was observed that –
1. 100.00 % respondents of production and quality
control department were said that collections of data of investigation and
trend analysis for reducing the cost of quality are needed.
2. 0.00 % respondent of production and quality control
department were said that collections of data of investigation and trend
analysis for reducing the cost of quality is needed
From the observations 1 to 2, it was interpreted that
need of collections of data of investigation and trend analysis is essential
for reduction in cost of quality.
Analysis 3: Reporting of quality performance
to manufacturing departments:
The data was obtained from employees of manufacturing
and quality control department about requirement of quality performance report
of manufactured products .The data was analyzed and tabulated as follows.
|
Opinion |
Total |
|
Yes |
100.00 % |
|
No |
0.00 % |
The graphical presentation of data analysis is given
below.
From the above analysis it was observed that –
1. 100.00 % respondents of manufacturing and quality
control department were said quality performance reports are needed.
2. 0.00 % respondents of manufacturing and quality control
department were said that quality performance reports are needed.
From the observations 1 to 2, it was interpreted that
requirement of reporting of quality performance to manufacturing is needed for
action for improving quality of product.
DISCUSSION:
The
success of any organization depends on the performance of the workers at the
lower levels of the organizational structure. Systems and methods for achieving
excellence have to create through initiation and support of management. The
total cost of quality can be minimized by observing the relationship between
cost of quality and the degree of conformance to customer requirements. The
cost of quality can be a powerful tool for quality improvement if properly
used. Initiation is required in understanding requirement of customer. Proper
planning is necessary for training to the employees about occurrences of
problem and defect generation during the manufacturing processes. Investigation
data of quality problems based on factual information will help in finding the
reasons of quality problems. Reporting of quality performance to the
manufacturing department helps in taking action for rectifying problems.
Applying proper methods will reduce the cost of quality and improve the
profitability to the organization.
REFERENCE:
Total Quality Management by K Shridhara
Bhat, Himalaya Publishing House
http://en.wikipedia.org/wiki/Quality_control#Total_quality_control
http://en.wikipedia.org/wiki/Quality_costs#Definitions
http://en.wikipedia.org/wiki/Cost_of_poor_quality
http://www.businessballs.com/dtiresources/quality_management_systems_QMS.pdf
Received
on 15.01.2013 Modified on
20.01.2013
Accepted on 09.02.2013 © A&V Publication all right reserved
Asian
J. Management 4(1): Jan.-Mar. 2013 page 36-39