Operation Management

MBA-I

Unit-IV
Presented
By
Mr.Vinayak Patil
( B.Sc , M.B.A, DLL,DIS, M.Phil )

Quality Concept
The

quality is desired characteristics

present in raw material , semi finished
goods and finished goods.
In every manufacturing organization
some standards are laid down either by
producer or customers .
These standards can be divided in to two
categories quantitative and qualitative .
Customer may pay more for higher
quality therefore marketing department
must be well aware of customer needs.

What exactly quality

product is ?
1.
2.
3.
4.

5.

If product fits for use

If product is designed as per need of
customer
If the customer is satisfied with
product
If the product is offering best
characteristics at a price range
which is affordable to customer .
If the product has good features in
terms of appearance ,test, life ..ect

Quality Inspection

Quality inspection is measure aimed

at checking ,measuring and testing
of product characteristics.
Here we need to observe given item
or product within specified
standards .
This task is usually performed by
specialized personnel and does not
fall within the responsibility of
production department .

Objectives of Quality Inspection

It

maintains quality of final products by

comparing raw material , semi finished
goods and finished with predetermined
standards .
It prevents further process on semi finished
goods which are defective .
Defective items are located and reason for
such faulty products are detected .
Corrective measures are taken in later stage
to prevent occurrence of defects in the
product .
Properly planned inspection reduces chances
of rejection of product by the customer.

Conti.
Thus

it reduces extra cost required to

spend on replacement and reworking
of defective products .
Some defective items can be reworked
to good condition by minor working .

Quality Control
Quality

control (QC) is a procedure or set

of procedures intended to ensure that a
manufactured product adheres to a
defined set of quality criteria or meets
the requirements of the customers.
It is a part of quality management
focused on fulfilling quality requirements.
It is process through which a business
seeks to ensure that product quality is
maintained or improved and
manufacturing errors are reduced or
eliminated.

Steps of quality control

Programme
Formulate quality policy
Understand

the customers need,

taste & preference
Design the product according to
customers need
Prepare the inspection plan and
quality standards
Find deviation if any
Correct the deviation to maintain
quality standards

Conti
Decide

action on defective
products
Crate quality consciousness

Objective/Purpose of QC
To

satisfy the customers by providing

the required product at minimum price
To increase the sales and profit of
company by providing acceptable
products to the in terms of price, long
life ,quality etc
To recommend the corrective actions if
product quality differs from standards
To reduce wastages

Conti..
To

create quality awareness in

the organization
To suggest suitable improvement
in the quality (if any)
To make operator aware about
quality

Quality Policy Of TATA

Motors

Mahindra Gears :Quality

Policy
We,

at Mahindra Gears, are

committed to building and
sustaining a globally competitive
business by continually improving
our quality management system.

Conti
We

strive to maintain and achieve global

quality standards, and exceed our customer
expectations through:
Effective utilization of our resources
Adopting preventive methodology in our processes
Providing adequate learning & growth opportunities
and requisite tools
Appropriately upgrading the technology
Focusing on waste elimination and cost innovation

This

shall be accomplished through

complete involvement of all employees,
suppliers and other stakeholders, ensuring
mutually beneficial partnerships.

Hindustan Unilever
:Quality Policy
Meeting

quality expectations of
our consumers into our products
is a priority for us.
Our Commitment
To win consumers confidence and
loyalty, we need to consistently deliver
branded products of excellent quality.
We understand the different needs of our
consumers and strive to develop and
deliver superior brands to ensure that
theyre the preferred choice.

Conti..
Minimize waste, reduce costs and drive
profitability.

Quality Assurance

Definition

: Quality Assurance deals

with assuring the desired quality
,reliability, service and other functional
aspects in the manufacturing product ,
through scientific techniques .
It deals with evaluating companys
activities with respect to quality and
representing the results of evaluation
in all concern departments for
information and subsequent action to
be taken.

Stages in Quality
Assurance
Design Stage : Quality of design
should be according to the
customers needs.
Manufacturing Stage :
Manufactured products must
confirm the design .
Field Analysis : By analyzing
customer complaints , corrective
action must be taken.

Quality Assurance
Program
Setting

proper and realistic

standards
Setting up reliable method of
Measurement
Measuring the actual quality
Corrective action to be taken if
there is any deviation from
standards

Activities in Quality Assurance

Program
Quality

rating of outgoing

product
After sales service or filed
complaints analysis
Quality level setting
Quality audit
Executive Reports on quality
Inspection planning

Advantages Quality
Assurance
Suggest
management about corrective

actions ,if there is any deviation in

actual manufacturing process.
It reduces wastages
Quality assured products helps to
minimize field complaints (Reduces
reworking and replacement cost & time)
Quality product not only increases the
sales but also creates loyal customers .
And it will helpful to build good
customer relationship .

Conti..
Quality

assurance makes
inspection easy and reduces
inspection rejection.
The quality assurance increases
productivity and efficiency .

Quality Practical Examples

Market

leader in Mosquito coils: Good

Night , All Out ,Mortein , STAR .
Market leader in Ayurvedic Toothpaste:
Dabur Babool ,Meswak ,VICCO
Market leader in tooth paste :
Coalgate, Pepsodent, Close
Up,Sensodyne ,Oral-B
Market leader in Washing Powder :
Nirama, Surf excel ,RIN, Ghadi ,Tide
,Wheel, Ariel..etc

Quality circle
Quality

circle is a group of 8 to10

members of similar areas who come
together Voluntarily to solve work
related problems like quality,
productivity, safety ,efficiency
,effectiveness etc. and come to
solution through discussion to improve
effectiveness in their functional areas.
Size of quality circle is important ,ideal
quality circle consist 8to 10 members.

Conti
Incase

case of too many

participants , more than one
quality circle can be formed .
E.g. if there are35 production
engineers who want to form quality
circle , then 4 quality circles of 8-9
members can be formed
Participation in QC Voluntary
not forceful .Members are not
forced to join the group.

Benefits of QC to
Organization
It

improves employee Employer

relationship
It improves moral and team spirit
of employees through their
participation in decision making.
It improves productivity
It helps to improve quality of the
product
It saves managerial time

Benefits of QC to
Employee
It

gives opportunity to employees

in decision making
It improves moral and team spirit
It develops problem solving
capacity
It creates loyalty among workers

Working of Quality Circle

Formation

of the circle
Training the members
Problem identification
Problem analysis
Proposed situation (Various
Solutions)
Management Representation
Review by Management
Implementing the solution
Monitoring

Total Quality Management

(TQM): Continuous
TQM is a cost effective system for
Improvement

integrating the continuous quality

improvement and efforts of people
at all levels in the organization to
deliver products and services which
ensure customer satisfaction
It enables defect prevention leading
to maximum customer satisfaction.
TQM is organizational activity and it
is a way to improve quality of
products continuously.

Objectives of TQM system

To

have specific quality policy and

objectives
Strong customer focus
Periodic audit of activities
Comparison of performance with
actual standards
Quality equipment identification
Integration of people ,Machine &
information

Areas of TQM
Pre-Production

system (product
&process design)
Quality planning of product and
process
Purchasing
Quality evaluation of product and
process
Quality information systems &
Equipments
Quality training and orientation
After sales service quality

ISO Certification
ISO

is short form of International

Organization for Standardization .
It is worldwide federation of
national standard bodies of 91
countries which include India also
.

ISO figure showing quality

standards

Continue
ISO

8402 defines the basic and

fundamental terms used in quality
ISO 9000 gives the guidelines for
selection an use of standard and
clarifies links between various
quality concepts
ISO 9001 is used to ensure
conformance requirement during
design and development, production
, Installation .

Continue
ISO

2002 is used to when only

inspection and test
requirements .
ISO 9004 is used for advance
stages which contains guidelines
on technical ,administrative and
human factors affecting the
quality of the products and
services

Need of ISO System

ISO

standards provide an assurance

to customers that the supplier has
an adequate quality management
system
ISO ensures consistent performance
It emphasizes on documentation at
every stage of production, so
documentation procedure brings out
system.

Benefits of ISO
implementation and
It enhance customer satisfaction
Certification
It

focuses on proper maintenance

of record
It ensures proper house keeping
It motivate employee strongly

Elements /Contents of ISO

9000
Management

Responsibility
Quality system
Design control
Document and data control
Purchasing
Customer supplied product
Process control
Inspection & Testing

Continue
Measuring

& testing equipment

Inspection & test status
Corrective & preventive actions
Handling
Storage
Packaging
Preservation
Delivery

Continue
Quality

records
Internal quality audits
Training
Service
Statistical techniques

ISO 9000 Implementation

Steps
Reading

of relevant standards by
top Management
Preparation and announcement of
quality policy and objectives
Appointment of Management
Representative
Selection of core group for
implementation
Training of all employees

Continue ..
Preparation

of relevant department
procedures and work instruction
Selection and training of internal
auditors
Internal quality audit
Rectification of an NCs
Stabilizing system
Publication of final documented system
Pre-audit by certifying agencies
Rectification of an NCs

Continue ..
Final

audit
Issue of certificate
Improving system

Thank You