Module 2 - quality management

Managing business process services

Q1. Explain quality

➔ Quality means “Performance upon expectations” and “fit for functions.”
◆ A product is said to be of good quality if it satisfies the customer requirements in terms of
performance, grade, durability, appearance and purpose, etc.
◆ It also refers to a product as ‘fit for purpose,’ while at the same time satisfying consumer
expectations
◆ In business, especially manufacturing, it is a measure of excellence. In this context, it can
also refer to a state of being defect-free.
➔ History of quality
◆ Until the early 19th century, manufacturing in the industrialized world tended to follow this
craftsmanship model.
◆ The factory system, with its emphasis on product inspection, started in Great Britain in the
mid-1750s and grew into the Industrial Revolution in the early 1800s.
◆ Late in the 19th century the United States broke further from European tradition and adopted
a new management approach developed by Frederick W. Taylor, whose goal was to
increase productivity without increasing the number of skilled craftsmen.
◆ W. Edwards Deming, who had become frustrated with American managers when most
programs for statistical quality control were terminated once the war and government
contracts came to and end.
◆ Joseph M. Juran who predicted the quality of Japanese goods would overtake the quality of
goods produced in the United States by the mid-1970s because of Japan’s revolutionary
rate of quality improvement.

Q2. Who is a customer

➔ “A customer is a person or business that buys goods or services from another business”.
➔ Customers are important because they generate revenue.
➔ Without them, businesses would go out of business.
➔ Every business fights to get customers by advertising their products heavily, cutting costs to get
more customers, or making unique products and experiences that people love.
➔ There are 2 types of customers
◆ Internal customers, An internal customer is an individual from an organization who receives
a specific service from a staff member within the same organization. They're typically
employees who perform a specific task that directly affects the job performance of another
staff member.
 ◆ External customers, also known as the clients or clientele, are the people who pay for the
goods and services that a company provides. They generally have no other connection to
the company beyond their purchases.
➔ The following are the ways a company can identify customer needs -
◆ Use Existing Data.
◆ Solicit Customer Feedback.
◆ Customer Journey Mapping.
◆ Study competitors
◆ Social media listening
◆ Keyword research
➔ Another effective way is to carry out a customer survey
➔ The guidelines to conduct a survey are -
◆ Keep it shirt
◆ ask questions that fulfill your end goal. ...
◆ Construct smart, open-ended questions. ...
◆ Ask one question at a time. ...
◆ Make rating scales consistent. ...
◆ Avoid leading and loaded questions. ...
◆ Make use of yes/no questions. ...
◆ Get specific and avoid assumptions.

Q3. how can a business measure quality

➔ The measurement of Quality, whether Product or Process, requires the collection and analysis of
information, usually stated in terms of measurements and metrics.
➔ Measurements are made primarily to gain control of a project, and therefore be able to manage it.
➔ They are also used to evaluate how close or far we are from the objectives set in the plan in terms
of completion, quality, compliance to requirements, etc.
➔ Businesses can measure quality aspects such as:
◆ Failure or reject rates.
◆ Level of product returns.
◆ Customer complaints.
◆ Customer satisfaction – usually measured by a survey.
◆ Customer loyalty

Q4. explain statistics used in business and its types

➔ Statistics is the study of the collection, analysis, interpretation, presentation, and organization of
data. In other words, it is a mathematical discipline to collect, summarize data.
➔ We can say that statistics is a branch of applied mathematics.
➔ Research is developed using quantitative and qualitative research methods to gain a complete
understanding of the target audience’s needs, challenges, wants, willingness to take action, and
more.
➔ However, the right time to use either method (or use both together) can vary depending on your
research goals and needs.
➔ There are 2 types of statistics-
◆ Descriptive statistics
● Descriptive statistics uses data that provides a description of the population either
through numerical calculation or graph or table. It provides a graphical summary of
data. It is simply used for summarizing objects, etc.
● The tools of descriptive statistics are -
○ Mean - it is the measure of the average of all values in a sample set

◆ Example:
○ Median - It is measure of central value of a sample set. In these, the data set is
ordered from lowest to highest value and then finds the exact middle.

◆ Example:
○ Mode - It is value most frequently arrived in sample set. The value repeated
most of time in central set is actually mode.
◆ Example:

◆ Inferential statistics
● Inferential Statistics makes inference and prediction about population based on a
sample of data taken from population.
 ● It generalizes a large dataset and applies probabilities to draw a conclusion.
● It is simply used for explaining meaning of descriptive stats.
● It is simply used to analyze, interpret result, and draw conclusion.
● The types of data are -
○ Discrete data - we have a count
○ Continuous data - we can measure it
○ Categorical data - the data can be given a label - it is definable
● The tools of inferential statistics are -
○ Range - It is calculated as the difference between Max and Min value in the
data.
◆ The range in statistics for a given data set is the difference between the
highest and lowest values.
◆ For example, if the given data set is {2,5,8,10,3}, then the range will be 10
– 2 = 8.
○ Interquartile range - It is the range of middle 50% data points in a series.
◆ Calculated as difference between Q3 and Q1 i.e: I.Q.R = Q3-Q1
◆ It is a good measure to understand dispersion around the center.
◆ Eg: 12, 12,14,15,16,16,16,17,17,17,17,18,21,21,22,23,25,25,27.
● Q1=16, Q3=21.75
● i.e: I.Q.R = Q3-Q1 = 21.75-16= 5.75
○ Standard deviation - It is a measure of dispersion also known as measure of
distance from mean.
◆ It is based on all observations.
◆ The standard deviation indicates a “typical” deviation from the mean.
2
Σ(𝑥 − 𝑥)
◆ SD =
𝑛−1
◆ Where, 𝑋= Sum / n

Q5. explain sampling

➔ Sampling means selecting the group that you will actually collect data from in your research
➔ Sampling allows you to test a hypothesis about the charectaristics of a population

➔ Steps to create a sample

◆ Define the population - in terms of element, units, extent and time
◆ Specify the sampling frame - the means of representing the elements of the population
◆ Specify the sampling unit - the unit for sampling - it may contain one or several population
elements
◆ Specify the sampling method
◆ Determine the sample size
 ◆ Specify the sampling plan
◆ Select the sample

➔ The need for sampling

◆ To bring the population to a manageable number
◆ To reduce costs
◆ To help minimize error due to large number of people
◆ Meetup with the challenge of time
◆ To reduce the time consumed
◆ Fair representation of population parameters

➔ Types of sampling
● Simple random sampling - A probability sampling technique in which each element
in the population has a known and equal probability of selection is known as simple
random sampling (SRS).

○
● Systematic sampling - A probability sampling technique in which the sample is
chosen by selecting a random starting point and then picking every ith element in
succession from the sampling frame.

○
● Stratified random sampling - A probability sampling technique that uses a two-step
process to partition the population into subpopulations, or strata(Translation) is
known as stratified random sampling.
○ Elements are selected from each stratum by a random procedure
○ E.g. people in the age strata of 35-40, people in the income strata to Rs. 20000
p.m. etc
● Cluster sampling - The target population is divided into mutually exclusive and
collectively exhaustive subpopulation called clusters.
○ Then a random sample of clusters is selected based on probability sampling
techniques such as simple random sampling.
Q6. explain quality assurance and quality control
Quality assurance
➔ It is the term used in both manufacturing and service industries to describe the systematic efforts
taken to ensure that the product(s) delivered to customer(s) meet with the contractual and other
agreed upon performance, design, reliability, and maintainability expectations of that customer.
➔ The core purpose of Quality Assurance is to prevent mistakes and defects in the development and
production of both manufactured products, such as automobiles and shoes, and delivered
services, such as automotive repair and athletic shoe design.

Quality control
➔ Quality control is a process by which entities review the quality of all factors involved in
production.
➔ a business seeks to ensure that product quality is maintained or improved.
➔ This is done by training personnel, creating benchmarks for product quality, and testing products
to check for statistically significant variations.
➔ Quality control involves testing units and determining if they are within the specifications for the
final product.
◆ Example - the food industry uses quality control methods to ensure customers do not get
sick from their products

Q7. what are 7 basic tools of quality

These seven basic tools of quality, first emphasized by Kaoru Ishikawa, a professor of engineering at
Tokyo University and the father of "quality circles.
➔ Cause-and-effect diagram (also called Ishikawa or fishbone diagrams): Identifies many possible
causes for an effect or problem and sorts ideas into useful categories.
➔ Check sheet: A structured, prepared form for collecting and analyzing data; a generic tool that can
be adapted for a wide variety of purposes.
➔ Control chart: Graph used to study how a process changes over time. Comparing current data to
historical control limits leads to conclusions about whether the process variation is consistent (in
control) or is unpredictable (out of control, affected by special causes of variation).
➔ Histogram: The most commonly used graph for showing frequency distributions, or how often
each different value in a set of data occurs.
➔ Pareto chart: A bar graph that shows which factors are more significant.
➔ Scatter diagram: Graphs pairs of numerical data, one variable on each axis, to look for a
relationship.
➔ Stratification: A technique that separates data gathered from a variety of sources so that patterns
can be seen (some lists replace stratification with flowchart or run chart).
Q8. what is a qms
➔ A quality management system (QMS): is defined as a formalized system that documents
processes, procedures, and responsibilities for achieving quality policies and objectives.
➔ A quality management system (QMS) is a collection of business processes focused on
consistently meeting customer requirements and enhancing their satisfaction.
➔ It is aligned with an organization's purpose and strategic direction (ISO 9001:2015).
➔ It is expressed as the organizational goals and aspirations, policies, processes, documented
information, and resources needed to implement and maintain it.
➔ As per ISO9001 there are 4 categories -
◆ Management responsibility - it is the management’s responsibility to plan strategically for
the quality deliverable
◆ Resource planning - proper resources must be provided to ensure proper quality
◆ Services of product realisation
◆ Measurement, checking and monitoring - regular checks and inspections

Q9. what are the principles of ISO9001 ECLPIER

➔ Engagement of people - People at all levels are the essence of an organization and their full
involvement enables their abilities to be used for the organization’s benefit.
➔ Customer focus - Organizations depend on their customers and therefore should understand
current and future customer needs, should meet customer. requirements, and strive to exceed
customer expectations
➔ Leadership - They should create and maintain the internal environment in which people can
become fully involved in achieving the organization’s objectives.
➔ Process approach - A desired result is achieved more efficiently when activities and related
resources are managed as a process.
➔ Improvement - Continual improvement of the organization’s overall performance should be a
permanent objective of the organization.
➔ Evidence-based decision making - Effective decisions are based on the analysis of data and
information.
➔ Relationship management - An organization and its suppliers are interdependent and a mutually
beneficial relationship enhances the ability of both to create value.

Q11. explain CMMI

➔ The Capability Maturity Model Integration (CMMI) is a process and behavioral model that helps
organizations streamline process improvement and encourage productive, efficient behaviors
that decrease risks in software, product, and service development.
➔ The primary goal of CMMI is the creation of “reliable environments where products, services and
departments are proactive, efficient and productive.”
➔ CMMI’s objectives for businesses include enabling your organization to:
◆ Produce quality services or products
◆ Improve customer satisfaction
◆ Increase value for stockholders
◆ Achieve industry-wide recognition for excellence
◆ Grow market share
➔ The Capability Maturity Model Integration (CMMI) is a model that helps organizations to:
◆ Effectuate process improvement
◆ Develop behaviors that decrease risks in service, product, and software development
➔ The 5 maturity levels of CMMI are -
◆ Initial - Processes are seen as unpredictable, poorly controlled, and reactive. ...
◆ Managed - Processes are characterized by projects and are frequently reactive.
◆ Defined - Processes are well-characterized and well-understood. ...
◆ Quantitatively Managed.
◆ Optimizing.
Q12. what is defects logging
Defect logging is the process of finding defects in the application under test or product by testing or
recording feedback from customers and making new versions of the product that fix the defects or the
clients feedback.
Defect tracking is the process of tracking the logged defects in a product from beginning to closure (by
inspection, testing, or recording feedback from customers), and making new versions of the product that
fix the defects.
Defect tracking is important in software engineering as complex software systems typically have
tens or hundreds or thousands of defects: managing, evaluating and prioritizing these defects is a
difficult task.
When the numbers of defects gets quite large, and the defects need to be tracked over extended
periods of time, use of a defect tracking system can make the management task much easier.

Defect calculation
Defects per unit (DPU) - it measures the average number of defects per product unit
It is found by dividing the number of defects found by the number of units

Defects per million opportunities (DPMO)- this represents a ratio of the number of defects in one
million opportunities
Basically, how many times did you have a flaw or mistake (defect) for every opportunity
there was to have a flaw or mistake.