Quality Management and

Statistical Quality
 Evolution of Quality
• The evolution of quality can be traced back to the
Industrial Revolution, when the focus was on mass
production of goods to meet the growing demand of
consumers.
• However, this approach led to the production of low-
quality goods, which led to customer dissatisfaction and
product failures. The need for a more systematic
approach to quality became apparent, leading to the
evolution of quality management.
• Inspection: The first stage in the evolution of quality was
inspection, where the emphasis was on detecting and
correcting defects in products. Inspection was typically
done at the end of the production process and was a
reactive approach to quality.
 Evolution of Quality
• Quality Control: The next stage was the evolution of quality
control, which involved the use of statistical methods to control
the quality of products during production. The emphasis was on
preventing defects before they occurred, and this approach was
more proactive than inspection.
• Quality Assurance: Quality assurance evolved as a way to
ensure that the quality of products was consistent with customer
requirements. Quality assurance involves a systematic approach
to quality that includes planning, control, and continuous
improvement.
• Total Quality Management (TQM): TQM is a management
philosophy that evolved in the 1980s and emphasizes the
involvement of all employees in the quality management
process. TQM incorporates all aspects of a company's
operations, from product design to customer service, and
focuses on continuous improvement.
 Evolution of Quality
• Six Sigma: Six Sigma is a data-driven approach to quality that
seeks to reduce defects and improve quality by identifying and
eliminating the causes of variation in production processes. Six
Sigma emphasizes the use of statistical methods to measure and
improve quality.
• Lean Manufacturing: Lean manufacturing is a systematic
approach to eliminating waste and improving efficiency in
production processes. Lean manufacturing emphasizes the use
of continuous improvement and the involvement of all employees
in the quality management process.
Overall, the evolution of quality has been driven by the need to
meet customer requirements and improve the efficiency and
effectiveness of production processes. Today, quality is considered
an essential element of business success and is a key focus of
many organizations around the world.
 Concept of Quality
• Traditional thinking would say that Quality is conference to
specifications, that is does the product do what it designed to
do?
• Quality refers to a set of characteristics expected from
products or services.
• Fitness for Purpose
• It is a combination of various factors such as design,
performance, reliability, safety, efficiency, effectiveness,
economy and timeliness.
• In other words, quality means conformance with specific
standards.
• It also implies a measure of how well a product or service
meets its purpose.
• There is no one way of defining quality, it depends on who is
defining quality.
 Concept of Quality
• Quality, as it applies to an object (product, service,
process), is defined as the “degree to which a set of
inherent characteristics (attributes) of the object satisfies
a set of requirements.”
• Therefore, the quality of an object is determined by
comparing a predetermined set of characteristics against
a set of requirements.
• If those characteristics confirm to the requirements, high
quality is achieved, but if those characteristics do not
conform, a low or poor level of quality is achieved.
• A requirement is a need, expectation, or obligation.
 Quality Management
• Quality management – Quality management includes
all activities that organizations use to direct, control, and
coordinate quality.
• These activities include establishing quality policy, quality
objectives, quality planning, quality control, quality
assurance, and quality improvement.
• The above “bold” four activities defines the concept of
quality.
• Quality management is focused not only on product and
service quality, but also the means to achieve it.
• Quality management therefore uses quality assurance
and control of processes as well as products to achieve
more consistent quality.
 Quality Assurance
• Quality Assurance (QA) and Quality Control (QC) are
interrelated but defined differently.
• QA is an integrated system of quality management
activities involving planning, implementation,
assessment, reporting, and quality improvement to
ensure that a process, product, or service is of the type
and quality needed and expected by the customer.
• QA consists of that “part of quality management focused
on providing confidence that quality requirements will be
fulfilled” (ISO 9000).
• QA is process oriented.
 Quality Assurance
• QA activities include:

– identifying quality requirements

– developing, identifying, or improving processes
– identifying standard operating procedures (SOP)
– planning QC activities
– establishing documentation requirements
– conducting audits
– analysing trends in QC data
– implementing or reviewing corrective or preventive actions
– developing process checklists
– reviewing project QC documentation
 Quality Control
• Quality control (QC) consists of that “part of quality
management focused on fulfilling quality requirements.”
(ISO 9000)
• While quality assurance relates to how processes are
designed and performed or how a product is made,
quality control is more the inspection aspect of quality
management.
• Inspection is the process of measuring, examining, or
testing one or more characteristics of a product or
service and comparing these with specified requirements
to determine conformity.
• Products and processes can be inspected to make sure
that the product being provided is correct and meets
requirements.
 Quality Control
• The aim of QC is to find (and correct) defects in a
process or product.
• QC, therefore, is product oriented.
• QC activities are not intended to eliminate or minimize
errors, but rather to measure their effect.
• QC activities include QC inspections (measurements or
tests); gathering QC data, identifying, reporting and
evaluating noncompliance, recommending process
improvements; evaluating the effectiveness of corrective
actions; and producing QC reports.
• Therefore, evaluating a QC check or procedure does not
itself eliminate errors.
 Quality Control
• The QC data can and should be used to take appropriate
corrective actions which can minimize error or control
data to an acceptable level of quality in the future.
• QC is both proactive and corrective.
• It establishes measures to determine if procedures are
producing acceptable data and identifies actions to
correct unacceptable performance.
 Quality Management System
• Quality is best achieved by implementing a process-
based quality management system, which can
accomplish the following tasks:
– Identify, develop, and plan processes and activities to
produce the desired outcome.
– Establish process and product requirements.
– Inspect (measure, examine, or test) certain process
and product characteristics to verify conformance to
requirements.
– Document requirements, decisions, and reporting.
 Dimensions of Quality
Product:
• Performance
• Features
• Reliability
• Conformance
• Durability
• Serviceability
• Aesthetics
• Perceived Quality
Service:
Adding Responsiveness to the above list
 Dimensions of Quality
• Performance: Refers to the efficiency with which a
product achieves its intended purpose.
• Features: Attributes of a product that supplement a
product's basic performance.
• Reliability: The propensity for a product to perform
consistently over its useful design life.
• Conformance: Numerical dimensions for a product's
performance, such as capacity, speed, size, durability,
color, or the like.
• Durability: The degree to which a product tolerates
stress or trauma without failure.
• Serviceability: Ease of repair.
 Dimensions of Quality
• Aesthetics: Subjective sensory characteristics such as
taste, feel, sound, look, and smell.
• Perceived Quality: Based on customer opinion.
Customers imbue (: inspire or permeate with (a feeling or quality))
products and services with their understanding of their
goodness. Include the physical appearance of the
service facility, the equipment, the personnel, and the
communication material.
Service Reliability: Differs from product reliability in that it
relates to the ability of the service provider to perform the
promised service dependably and accurately.
• Responsiveness: The willingness of the service
provider to be helpful and prompt in providing service.
 Types of Quality
• Indifferent Quality: That customer does not notice.

• Expected Quality: Is the quality that customer expects.

• One dimensional Quality: is the quality the customer

expects but that does not necessarily result in lots of
order.

• Exiting Quality: is the quality that exceeds customer

requirements
 Customer Driven Quality
Customer Driven Quality is meeting or exceeding customer
expectations.
• Directing attention toward satisfying and delivering value
to the customer.
• Tools for Influencing Customer Perceptions of Quality
• Price and advertising are the primary tools for influencing
customer perceptions of quality, but are imperfect
mechanisms.
• Focus on Service
• Customer service surveys are important tools for
assessing the multiple dimensions of quality.
 Quality Guru
• A Quality Guru is an individual who has expertise in the field
of quality management and has made significant contributions
to the development and improvement of quality management
practices.
• These individuals are recognized for their knowledge, skills,
and expertise in areas such as statistical process control,
quality assurance, quality control, and continuous
improvement.
• Some of the most well-known quality gurus include W.
Edwards Deming, Joseph Juran, Philip Crosby, and Kaoru
Ishikawa.
• They have all played a key role in shaping modern quality
management practices and have provided valuable insights
into how organizations can achieve greater levels of
efficiency, effectiveness, and customer satisfaction through
quality management.
 W. Edwards Deming (1900-1993)
• He was an American engineer, statistician, and management
consultant who is widely regarded as one of the most
influential thinkers in the field of quality management. His
contributions are numerous, but some of the most significant
include:
• The Deming System of Profound Knowledge: Deming
developed a holistic approach to management that is based
on four interrelated areas of knowledge: understanding
systems, variation, knowledge of psychology, and theory
of knowledge. This system emphasizes the importance of
leadership, teamwork, and continuous improvement.
• The 14 Points for Management: Deming articulated a set of
14 principles for management that he believed were essential
for achieving organizational success. These principles include
creating constancy of purpose, adopting a new philosophy,
improving constantly and forever, and driving out fear.
 W. Edwards Deming (1900-1993)
• Statistical Process Control (SPC): Deming helped to develop the
concept of SPC, which is a method for monitoring and controlling
quality by using statistical techniques to identify and eliminate
variation in production processes. This approach has been
widely adopted by many industries and is now considered a
cornerstone of quality management.
• Quality Improvement Programs: Deming was a strong advocate
for the use of quality improvement programs, such as Total
Quality Management (TQM) and Six Sigma.
• The Deming Prize: In recognition of his contributions to quality
management, the Japanese Union of Scientists and Engineers
(JUSE) established the Deming Prize in 1951. This award is
given annually to companies that have made significant
advancements in quality management.
• Overall, Deming's contributions have had a profound impact on
the field of quality management and have helped to shape the
way that organizations approach continuous improvement and
excellence.
 Joseph Juran (1904-2008)
• Joseph Juran (1904-2008) was an American engineer
and management consultant who is widely regarded as
one of the most influential thinkers in the field of quality
management. Juran's contributions were instrumental in
the development of the modern quality management
field, and he is often credited with helping to establish
the discipline of Total Quality Management (TQM).
Some of Juran's most significant contributions include
the following:
• Quality Trilogy: Juran's quality trilogy, which consists of
quality planning, quality control, and quality
improvement, provided a framework for organizations to
improve their products and services. This approach
emphasized the importance of quality in every aspect of
an organization's operations.
The Juran Trilogy is an improvement cycle that is meant to reduce the
cost of poor quality by planning quality into the product / process.
1.Quality Planning: In the planning stage, it is critical to define who the
customers are and to define their needs (voice of the customer). Once
the customer needs are identified, define the requirements for the
product / process / service / system, etc., and develop them for
operations along with the respective stakeholder expectations.
Planning activities are done through a multidisciplinary team, with the
involvement of key stakeholders.
2.Quality Control: During the control phase, determine what needs to
be measured (what forms of data and from which processes?), and set
a goal for performance. Obtain feedback by measuring actual
performance, and act on the gap between performance and the goal. In
Statistical Process Control (SPC), there are several tools that could be
used in the control phase of the Juran Trilogy: such as the 7 QC tools
and other statistical process control methods.
3.Quality Improvement: There are four different strategies to
improvement that could be applied for improvements:
1. Repair: reactive approach - fix what is broken
2. Refinement: proactive approach - continually improve a process
that isn’t broken
3. Renovation: improvement through innovation or technological
advancement
4. Reinvention: most demanding approach – abandon the current
 Joseph Juran (1904-2008)
• Pareto Principle: Juran was a proponent of the Pareto principle,
also known as the 80/20 rule, which suggests that 80% of a
problem's effects are caused by 20% of its causes. This principle is
widely used in quality management to identify the most significant
problems and their root causes.
• Quality Management Framework: Juran developed a
comprehensive framework for quality management, which included
tools such as statistical process control (SPC), quality function
deployment (QFD), and cost of quality (COQ). This framework
provided a roadmap for organizations to improve their quality
management practices.
• Overall, Juran's contributions to the field of quality management
have had a profound impact on the way organizations approach
quality and continuous improvement. His work has helped to
establish quality management as a critical component of
organizational success, and his ideas continue to be influential
today.
• Quality Function Deployment (QFD)
and House of Quality (HOQ) are
structured approaches for defining
customer requirements and translating
design specifications and product control
characteristics into a planning matrix. In
other words, using QFD allows the
charting of customer wants and technical
how’s, which results in a better
understanding of design relationships.
 Philip Crosby (1926-2001)
• Philip Crosby (1926-2001) was an American quality
management professional and author who is best known for
his work in the field of quality management and his advocacy
of the concept of zero defects. Crosby's ideas and
philosophy have had a significant impact on the quality
management field, and he is often credited with popularizing
the notion that quality is free.
• Some of Crosby's most significant contributions include:
• The concept of zero defects: Crosby believed that the only
acceptable level of quality was perfection, and that the goal of
every organization should be to achieve zero defects in its
products or services.
• Quality is Free: Crosby authored the book "Quality is Free,"
which argued that the cost of quality was less than the cost of
poor quality, and that organizations that invested in quality
management would see a positive return on their investment.
 Philip Crosby (1926-2001)
• The Four Absolutes of Quality: Crosby identified four
absolutes of quality, which include the definition of quality
as conformance to requirements, the system of
prevention, the performance standard of zero defects,
and the measurement of quality in monetary terms.
• The Crosby Quality College: Crosby founded the Crosby
Quality College, which provided training and education in
quality management principles and practices.
• Overall, Crosby's ideas and philosophy had a significant
impact on the quality management field and helped to
establish the concept of zero defects as a central tenet
of quality management. His work continues to be
influential today, and many organizations continue to
incorporate his ideas into their quality management
practices.
 Kaoru Ishikawa (1915-1989)
• Kaoru Ishikawa (1915-1989) was a Japanese engineer,
professor, and quality management expert who made
significant contributions to the field of quality control and
is known for developing the Ishikawa diagram, also
known as the fishbone diagram. Ishikawa was a
prominent figure in the Japanese quality movement, and
his work helped to establish Japan as a leader in quality
management.
• Some of Ishikawa's most significant contributions include:
• Ishikawa Diagram: Ishikawa developed the Ishikawa
diagram, also known as the fishbone diagram, which is a
tool used to identify the root causes of problems. This tool
is widely used in quality management to identify the
underlying causes of defects or errors and to develop
effective solutions.
Fishbone-cause effect model
 Kaoru Ishikawa (1915-1989)
• Quality Circles: Ishikawa was a proponent of the concept of quality
circles, which are small groups of employees who work together to
identify and solve quality problems. Quality circles are widely
used in Japan and other countries as a way to promote
continuous improvement and employee engagement.
• Total Quality Control: Ishikawa was a proponent of the Total
Quality Control (TQC) approach, which emphasizes the importance
of involving all employees in the quality improvement process. TQC
is a comprehensive approach to quality management that involves
every aspect of an organization's operations.
• Overall, Ishikawa's contributions to the field of quality management
have had a significant impact on the way organizations approach
quality and continuous improvement. His ideas and tools, such as
the Ishikawa diagram and quality circles, continue to be widely used
today in quality management practices around the world.
 Quality Awards
• Quality awards are formal recognition programs that are
designed to honour and promote excellence in various
areas of business and industry. These awards are
typically presented to companies, organizations, or
individuals that have demonstrated outstanding
performance and achievement in areas such as
customer service, innovation, efficiency, and overall
quality.
• Quality awards serve as a way to recognize and
celebrate the achievements of businesses and
organizations that have made significant contributions to
their industry. They also provide a framework for
benchmarking and continuous improvement,
encouraging other companies to strive for excellence in
their own operations.
 Quality Awards
• Deming Prize: This award is named after Dr. W. Edwards Deming,
who is known as the father of the quality movement. The award is
presented to organizations that have made significant contributions
to quality improvement in their industry.
• Baldrige Award: This award is named after Malcolm Baldrige, who
served as the Secretary of Commerce under President Ronald
Reagan. The award is presented to businesses and organizations in
the United States that have demonstrated excellence in areas such
as leadership, strategic planning, customer focus, and performance
excellence.
• European Quality Award: This award is presented to organizations
in Europe that have demonstrated excellence in quality
management and business performance.
• Shingo Prize: This award is named after Shigeo Shingo, who was a
leader in the development of the Toyota Production System. The
award is presented to organizations that have demonstrated
excellence in lean manufacturing and continuous improvement.
 Award in India
• The Rajiv Gandhi National Quality Award is the national quality award given by

the Bureau of Indian Standards to Indian organisations that show excellence in

their performance. It is named after Rajiv Gandhi, the former Prime Minister of

India, and was introduced in 1991 after his death.[1] The award aims to promote

quality services to the consumers and to give special recognition to organisations

that contribute significantly towards the quality movement of India.[2]

• The award is presented annually as per the financial year, and is similar to other

national quality awards worldwide like the

Malcolm Baldrige National Quality Award of the United States, European Quality

Award of the European Union and the Deming Prize of Japan.

 Quality Specification & Design
• Quality specification and design refer to the process of
defining and developing products or services that meet
specific quality requirements. This process involves identifying
customer needs and requirements, translating them into
technical specifications, and designing products or services
that meet those specifications.
• Quality specification and design are critical to the success of
any product or service. When done correctly, it can ensure
that a product or service meets customer expectations, is
safe, reliable, and cost-effective. Here are some key elements
of quality specification and design:
• Defining customer requirements: The first step in quality
specification and design is to define customer needs and
requirements. This involves understanding what the customer
wants and needs from the product or service, including
features, functionality, performance, and quality.
 Quality Specification & Design
• Translating requirements into technical
specifications: Once customer requirements are
defined, they must be translated into technical
specifications. This involves identifying the specific
technical requirements that must be met to deliver a
product or service that meets customer needs.
• Designing the product or service: Based on the
technical specifications, the product or service must be
designed. This involves creating a detailed plan for how
the product or service will be built, including materials,
manufacturing processes, and quality control
procedures.
 Quality Specification & Design
• Testing and validation: Before a product or service is
released to the market, it must be tested and validated to
ensure that it meets the technical specifications and
customer requirements. This involves a range of testing
and validation procedures, including product testing,
quality control checks, and customer feedback.
Overall, quality specification and design are critical
components of product and service development. By
focusing on customer requirements and technical
specifications, organizations can ensure that their products
and services meet customer needs, are safe and reliable,
and deliver value to the customer.
 Quality Tools
• Quality tools are a set of techniques, methods, and processes
used to improve the quality of products, services, and processes
in organizations. Quality tools are used to identify and analyze
problems, determine root causes, and develop and implement
effective solutions to improve quality.
• Quality tools can be categorized into seven basic groups:
• Flowcharts and diagrams: These are graphical representations
of processes, relationships, and data. They help to identify and
analyze the flow of activities and information in a process, and to
identify bottlenecks, redundancies, and other areas of
improvement.
• Statistical tools: These tools are used to collect, analyze, and
interpret data to identify patterns and trends, and to determine
the causes of problems. Statistical tools include control charts,
histograms, scatter diagrams, and Pareto charts.
 Quality Tools
• Checklists: These are simple lists of items or tasks that need
to be completed or checked. Checklists help to ensure that all
steps in a process are completed, and that important tasks
are not overlooked.
• Cause-and-effect diagrams: Also known as fishbone or
Ishikawa diagrams, these diagrams are used to identify the
root causes of problems. They show the relationships
between different factors that contribute to a problem.
• Pareto analysis: This is a method for identifying the most
important factors contributing to a problem or situation. It
involves ranking the factors by importance and focusing on
the top priorities.
 Quality Tools
• Benchmarking: This is the process of comparing an
organization's performance to that of other organizations or
industry standards. It can help identify best practices and
areas for improvement.
• Quality function deployment (QFD): This is a structured
process for translating customer needs and expectations into
specific product or service requirements. It helps to ensure
that the final product or service meets customer needs and
expectations.
These are just some of the quality tools available to
organizations. Using these tools can help organizations improve
their processes, products, and services, and ultimately achieve
better results.
• Control Charts for Variables
• The variables of interest here are those that have continuous
dimensions. They have an infinite number of possibilities.
Examples are weight, speed, length, or strength. Control
charts for the mean, x or x -bar, and the range, R , are used
to monitor processes that have continuous dimensions. The x
-chart tells us whether changes have occurred in the central
tendency (the mean, in this case) of a process. These
changes might be due to such factors as tool wear, a gradual
increase in temperature, a different method used on the
second shift, or new and stronger materials. The R -chart
values indicate that a gain or loss in dispersion has occurred.
• Such a change may be due to worn bearings, a loose tool, an
erratic flow of lubricants to a machine, or to sloppiness on
the part of a machine operator. The two types of charts go
hand in hand when monitoring variables because they
measure the two critical parameters: central tendency and
dispersion.
 Total Quality Management
Total - made up of the whole.
Quality - degree of excellence a product or service provides.
Management - act, art or manner of planning, controlling,
directing.
• Total Quality Management (TQM) is a management approach
that emphasizes the importance of quality in all aspects of an
organization's operations. TQM is a holistic approach that
involves all employees in a continuous effort to improve
quality and meet or exceed customer expectations.
• TQM is based on several key principles, including customer
focus, continuous improvement, employee involvement,
process management, and data-driven decision-making.
• The goal of TQM is to create a culture of quality within an
organization, where everyone is committed of producing high-
quality products or services and continuously improving
processes to meet customer needs.
 Concept of TQM
• Produce quality work the first time.
• Focus on the customer.
• Have a strategic approach to improvement.
• Improve continuously.
• Encourage mutual respect and teamwork.
 Concept of TQM
Quality element Previous state TQM
Definition

Definition Product-oriented Customer-oriented

Priorities Second to service First among the equals of
and cost service and cost
Decisions Short-term Long term
Emphasis Detection Prevention
Errors Operations System
Responsibility Quality Control Everyone
Problem Solving Managers Teams
Manager’s Role Plan, Assign, Delegates, coach,
Control and Enforce facilitate and mentor
 Six Sigma
• Six Sigma is a data-driven methodology used in business and
industry to improve the quality of processes and products.
• It was developed by Motorola in the 1980s and has since
been adopted by many other companies around the world.
• The goal of Six Sigma is to reduce the number of defects or
errors in a process to 3.4 or fewer per million opportunities.
• This level of performance is achieved by using statistical
analysis and other tools to identify and eliminate sources of
variability and waste in a process.
• Six Sigma is a quality management system that helps
organizations to achieve their goals by improving efficiency,
reducing costs, and increasing customer satisfaction.
• Six Sigma practitioners are trained and certified at different
levels, such as Green Belt, Black Belt, and Master Black Belt,
based on their knowledge and expertise in the methodology.
 Six Sigma
• The concept of Six Sigma is based on the idea that by
reducing variability and defects in a process, organizations
can achieve significant improvements in efficiency,
productivity, and customer satisfaction.
• It is a structured approach that involves identifying and
measuring the sources of variability in a process, analyzing
the data to determine the root cause of the problem, and then
implementing solutions to eliminate or reduce the sources of
variability.
• The Six Sigma methodology follows a five-phase approach
called DMAIC (Define, Measure, Analyze, Improve, and
Control) that helps organizations to identify and solve
problems in a process, and to make improvements that are
sustained over time.
 DMAIC
• The DMAIC methodology follows a structured and systematic
approach to identify and eliminate the sources of variation and
waste in a process. The five phases of DMAIC are as follows:
• Define: The Define phase is about defining the problem or
opportunity that needs to be addressed. It involves
identifying the scope of the project, the goals and
objectives, and the stakeholders involved. The Define
phase also includes developing a project charter that outlines
the project scope, objectives, and timelines.
• Measure: The Measure phase is about measuring the
current performance of the process, collecting data and
identifying the metrics that will be used to measure
progress. It involves developing a data collection plan, and
using tools such as process maps, flowcharts, and statistical
analysis to measure the performance of the process.
 DMAIC
• Analyze: The Analyze phase is about analyzing the data to identify
the root causes of the problem or opportunity. It involves using
tools such as Pareto charts, cause-and-effect diagrams, and
hypothesis testing to analyze the data and identify the key drivers of
the process.
• Improve: The Improve phase is about developing and
implementing solutions to address the root causes of the
problem. It involves generating and evaluating potential
solutions, developing an implementation plan, and piloting and
implementing the solution.
• Control: The Control phase is about ensuring that the
improvements are sustained over time. It involves developing a
control plan to monitor and control the process, setting up a
monitoring system to track progress, and developing a system to
address any issues that arise.
Overall, the DMAIC methodology is a powerful tool for improving
processes and quality, and it can be used in a wide range of industries
and applications.
 Basic Quality Control Tools
• Basic Quality Control (QC) tools are a set of simple and easy-to-use
graphical tools that are used to identify, measure, and analyze
quality-related problems in a process. These tools can help to
visualize data and identify trends, which can be used to make
informed decisions and improve processes.
Some of the commonly used basic QC tools are:
• Check Sheet: A simple form that is used to collect and record data.
It can be used to track the frequency and type of defects or
problems in a process.
• Histogram: A graphical representation of the distribution of data,
which can be used to identify trends and patterns. It can be used to
analyze the frequency and severity of defects or problems in a
process..
• Pareto Chart: A graphical representation of the relative frequency
or size of different problems or defects. It can be used to identify the
most significant problems or defects in a process and prioritize
improvement efforts.
 Basic Quality Control Tools
• Scatter Diagram: A graphical representation of the
relationship between two variables. It can be used to identify
correlations between different factors and identify potential
root causes of problems.
• Control Chart (Shewhart chart): A graphical representation
of the performance of a process over time. It can be used to
monitor and control the quality of a process and identify
trends or shifts in performance.
• Fishbone Diagram (fishbone or Ishikawa diagram): A
graphical representation of the possible causes of a problem.
It can be used to identify potential root causes of problems
and prioritize improvement efforts.
Overall, these basic QC tools can be used to identify, measure,
and analyze quality-related problems in a process, and to make
informed decisions and improve processes.
 Cost of Quality
• Cost of Quality (COQ) is a measure of the total cost
incurred by an organization to ensure that its products or
services meet the quality requirements of customers.
• It is a comprehensive measure that includes both the
costs of conformance (prevention and appraisal costs)
and the costs of non-conformance (internal and
external failure costs).
• The costs of conformance are the costs incurred to
ensure that products or services meet the quality
requirements of customers. These include prevention
costs, which are incurred to prevent defects from
occurring in the first place, and appraisal costs, which
are incurred to detect defects before they reach the
customer.
 Cost of Quality
• The costs of non-conformance are the costs incurred as a
result of defects or failures in products or services. These
include internal failure costs, which are incurred to correct
defects before they reach the customer, and external failure
costs, which are incurred as a result of defects or failures that
reach the customer.
• The goal of measuring COQ is to identify areas where quality
costs can be reduced or eliminated, and to find a balance
between the costs of conformance and the costs of non-
conformance. By reducing the costs of non-conformance,
organizations can improve customer satisfaction, reduce
waste and rework, and increase profitability.
Overall, COQ is an important measure that can help
organizations to improve their quality management processes
and reduce the total cost of producing and delivering products
and services.
 Prevention Costs
• Prevention costs are incurred to prevent or avoid quality
problems. These costs are associated with the design,
implementation, and maintenance of the quality management
system. They are planned and incurred before actual
operation, and they could include:
– Product or service requirements: Establishment of
specifications for incoming materials, processes, finished
products, and services
– Quality planning: Creation of plans for quality, reliability,
operations, production, and inspection
– Quality assurance: Creation and maintenance of the quality
system
– Training: Development, preparation, and maintenance of
programs
 Appraisal costs
• Appraisal costs are associated with measuring and monitoring
activities related to quality. These costs are associated with
the suppliers’ and customers’ evaluation of purchased
materials, processes, products, and services to ensure that
they conform to specifications. They could include:

– Verification: Checking of incoming material, process

setup, and products against agreed specifications
– Quality audits: Confirmation that the quality system is
functioning correctly
– Supplier rating: Assessment and approval of suppliers
of products and services
 Internal failure costs
• Internal failure costs are incurred to remedy defects
discovered before the product or service is delivered to the
customer. These costs occur when the results of work fail to
reach design quality standards and are detected before they
are transferred to the customer. They could include:
• Waste: Performance of unnecessary work or holding of stock
as a result of errors, poor organization, or communication
• Scrap: Defective product or material that cannot be repaired,
used, or sold
• Rework or rectification: Correction of defective material or
errors
• Failure analysis: Activity required to establish the causes of
internal product or service failure
 External failure costs
• External failure costs are incurred to remedy defects
discovered by customers. These costs occur when
products or services that fail to reach design quality
standards are not detected until after transfer to the
customer. They could include:
• Repairs and servicing: of both returned products and
those in the field
• Warranty claims: Failed products that are replaced or
services that are re-performed under a guarantee
• Complaints: All work and costs associated with handling
and servicing customers’ complaints
• Returns: Handling and investigation of rejected or
recalled products, including transport costs.
 Control Charts
• Also called: Shewhart chart, statistical process control
chart
• The control chart is a graph used to study how a process
changes over time.
• Data are plotted in time order.
• A control chart always has a central line for the average,
an upper line for the upper control limit, and a lower line
for the lower control limit.
• These lines are determined from historical data. By
comparing current data to these lines, you can draw
conclusions about whether the process variation is
consistent (in control) or is unpredictable (out of control,
affected by special causes of variation).
 Control Charts
WHEN TO USE A CONTROL CHART
• When controlling ongoing processes by finding and
correcting problems as they occur
• When predicting the expected range of outcomes from a
process
• When determining whether a process is stable (in
statistical control)
• When analyzing patterns of process variation from
special causes (non-routine events) or common causes
(built into the process)
• When determining whether your quality improvement
project should aim to prevent specific problems or to
make fundamental changes to the proces
 Control Charts
Types of Control Charts
• Variable control charts plot measurable process data in a
time-ordered sequence.
• Attribute control charts plot data that is counted instead
of being measured.
• X-Chart: X-Charts present variable data. Each data point is the
statistical mean of a subgroup of values.
• R-Chart: R charts display the moving range over time to monitor
process variation for individual observations.
• P-Chart
• NP-Chart
• C-Chart
• U-Chart
• A p-chart is an attributes control chart used with data
collected in subgroups of varying sizes. Because the
subgroup size can vary, it shows a proportion on
nonconforming items rather than the actual count. P-charts
show how the process changes over time. The process
attribute (or characteristic) is always described in a yes/no,
pass/fail, go/no go form. For example, use a p-chart to plot
the proportion of incomplete insurance claim forms
received weekly. The subgroup would vary, depending on
the total number of claims each week. P-charts are used to
determine if the process is stable and predictable, as well
as to monitor the effects of process improvement theories.
P-charts can be created using software programs like
SQCpack.
• In statistical quality control, the np-chart is
a type of control chart used to monitor the
number of nonconforming units in a
sample. It is an adaptation of the p-chart
and used in situations where personnel
find it easier to interpret process
performance in terms of concrete numbers
of units rather than the somewhat more
abstract proportion.
• In statistical quality control, the c-chart is a type of
control chart used to monitor "count"-type data, typically
total number of nonconformities per unit.[1] It is also
occasionally used to monitor the total number of events
occurring in a given unit of time.

• The c-chart differs from the p-chart in that it accounts for

the possibility of more than one nonconformity per
inspection unit, and that (unlike the p-chart and u-chart)
it requires a fixed sample size.
• In statistical quality control, the u-chart
is a type of control chart used to monitor
"count"-type data where the sample size is
greater than one, typically the average
number of nonconformities per unit.
Thank You