UNIVERSITY OF SOUTHERN MINDANAO

KIDAPAWAN CITY CAMPUS

Sudapin, Kidapawan City

QUALITY MANAGEMENT SYSTEM

QMS
What Is a Quality Management System?

A quality management system is a

management technique used to
communicate to employees what is required
to produce the desired quality of products
and services and to influence employee
actions to complete tasks according to the
quality specifications.
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DEFINITION

UALITY
• Does not mean an expensive product, it is
fitness for use of the customer.
• “The totality of features and characteristics of
a product or service, that bear on its ability to
satisfy a given or implied need”. (ISO 9000)
• Satisfying the customer needs
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 CHAIN REACTION

• The importance of quality

will be clear from the
chain reaction on account
of quality envisaged in
Japan in the 1950s. The
‘chain reaction’ is
depicted in Fig. 1.1 as
follows:

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 DIMENSIONS OF QUALITY

Product Quality
1. Functionality refers to the core features and characteristics of a product. The
definition of functionality as per ISO / IEC 9126: 1991: “A set of attributes that
bear on the existence of a set of functions and their specified properties. The
functions are those that satisfy stated or implied needs”.
2. Reliability A car should not breakdown often. This is the reliability attribute to
quality. Reliability is measured by mean (average) time between failures
(MTBF). Reliability is an indicator of durability of products.

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3. Usability A product should be easily usable. The customer should be able to
use the product easily without the help of experts. Usability can also be
measured by the time taken for training an operator for error-free operation of
a system.
4. Maintainability refers to the ease with which a product can be maintained in
the original condition. Products may become defective while in use or in
transit. It should be repairable so as to retain the original quality of the product
at the lowest cost at the earliest possible time. This applies to software,
automobiles, household items such as refrigerator, air conditioners, personal
computer, etc. For software, maintainability is defined in the Standard ISO
9126:1991 as “A set of attributes that bear on the effort needed to make
specified modifications”. Maintainability is measured as Mean Time To Repair
(MTTR). For instance, the MTTR of a street light controller is 15 minutes.
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5. Efficiency This is applicable to most products. Efficiency is the ratio of
output to input. If a car gives a mileage of 20 kms per litre of gasoline and
another car with identical features gives 15 kms per litre, then the former is
more efficient than the latter.
6. Portability This is more important in the context of software. Portability is
defined as a set of attributes that bear on the ability of software to be
transferred from one environment to another. The environment may be
organizational, hardware or software environment. Any program purchased,
such as an accounting software, should be usable in many different
machines without any problem. This is portability. This feature is applicable
even to consumer goods such as bulbs, razors, etc.

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 DIMENSIONS OF QUALITY

Service Quality
Unlike products, every service is made to order. Therefore, the service quality has
additional features. In availing a service, the customer interacts more with the service
provider. The quality of service depends to an large extent on understanding the
correct requirements of the customer through such interactions. Each service has to be
designed specifically for the customer. Hence, quality of service design is an important
feature. Service delivery is another feature of service quality. Thus, the additional
features of service quality are:
– Quality of customer service
– Quality of service design
– Quality of service delivery
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1. Quality of Customer Service Customer service is important in every
business. In a service industry, meeting customers and finding out their
implied requirements is more challenging. Therefore, ability to satisfy
customer depends on the quality of customer service. This includes but is
not limited to:
• How well the customer is received?
• How well the implied requirements are elucidated?
• How well the customer is treated/handled/satisfied?
2. Quality of Service Design Since services are usually made to order, it is
important that the service is designed as per the requirements of the
specific customer. For instance, a software product developed for a specific
bank takes into account the unique requirements of the bank. Quality of
service design in turn depends on the quality of customer service.
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3. Quality of Delivery is important in any sector, but more crucial in case of
services. Defects on delivery should be zero to satisfy the customers.
Additional attributes of quality, which are applicable to both products and
services, are given below:

 Timeliness Delivery on schedule as per requirements of the

customer is a must both in the product sector as well as in service
sector. No customer likes waiting. Any anticipated delay in schedule
should be communicated to customer well in advance. Timeliness is
critical for many products and services. Delay in arrival of aircrafts or
trains are instances of poor quality of the services encountered in
day-to-day life.

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 Aesthetics A product or service should not only perform well but also
appear attractive. Therefore, aesthetics is an important element of
quality. Aesthetics may include, but not limited to the appearance of the
product, the finish, colour, etc. Customers will buy only those
refrigerators or TV receivers or music systems, which look good.

 Regulatory Requirements as stipulated by the local and federal

governments should be fulfilled by the product or service. For instance,
an automobile has to meet Euro II Standards in respect of emission to
minimize environmental pollution. Similarly, there are regulatory
requirements in respect of safety of electro-medical products.

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 Requirements of Society The products should fulfill both the stated and
implied requirements imposed by society. The customer requirement should
not violate society or regulatory requirements. Thus to satisfy a customer, a
product cannot be built in such a way as to violate the requirements of
society of a safe and healthy product. For instance, providing belts for
persons sitting in the front seat in a car is a requirement of the society.
Hence, the car manufacturers should provide belts for the passengers
travelling in the front seat.
 Conformance to Standards Product or service should conform to the
stated and implied requirements of customers. Where applicable, they
should conform to applicable standards such as national standards,
international standards and industry standards. For instance, Electro-
Magnetic Interference (EMI) from a PC should be within the limits
prescribed by the corresponding standard.
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 HISTORY OF QMS
• Worked in Western Electric Company and AT&T, USA.
He advocated Statistical Quality Control (SQC) and
Acceptable Quality Level (AQL). AQL is the foundation
of today’s Six Sigma. He is the father figure of SQC,
who developed control charts for quality assessment
and improvement. Dr Shewhart also developed the
Plan, Do, Check, Act (PDCA) cycle for continuous
improvement, which is in use even today.

He is the author of the following books:

• Economic Control of Quality of Manufactured Products
Dr. Walter A Shewhart (1891-1967) • Statistical Method from the View Point of Quality
Control 13
 • An associate of Shewhart, worked in Western Electric Company as a
statistician. He was invited to Japan to lead the quality movement. He
modified PDCA cycle of Shewhart to the Plan, Do, Study and Act (PDSA)
cycle. He also advocated extensive use of statistics and control charts
and focused on product improvement and service conformance by
reducing variations in the process. He joined the US Census Bureau in
the year 1939 and proved that quality control methods could lower costs
even in an exclusive service organization.
• During the 1950s Deming visited Japan 18 times, held seminars and
worked with Japanese Union of Scientists and Engineers (JUSE).
• Deming stressed on the importance of suppliers and customers for the
business development and improvement. He believed that people do
their best and it is the system that must change to improve quality. His
14 points formed the basis for his advice to Japanese top management.
Deming W. Edward ( 1900-1993) The 14 points are applicable to every industry in product and service
sector.
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 • Juran also joined Western Electric Company and developed Western
Electric Statistical Quality Control Handbook. JUSE invited him to Japan in
1954. He identified fitness of quality and popularized the same.
JURAN’S FITNESS OF QUALITY
1. Quality of Design – through market research, product and concept.
2. Quality of conformance – through reliability, maintainability and logistic support.
3. Availability – through reliability, maintainability and logistic support.
4. Full service – through promptness, competence and integrity.
JURAN’S QUALITY PLANNING ROADMAP
• Identify your customers.
• Determine their needs.
• Translate them into your language.
• Develop process, which can produce those product features.
• Prove that the process can produce the product.
Joseph M. Juran (1904) • Transfer the resulting plans to the operating forces. 15
 • Crosby was Vice President of International Telephone &
Telegraph (ITT). His 4 absolutes of Quality4 are very relevant to
TQM.
CROSBY’S FOUR ABSOLUTES OF QUALITY
1. Quality is conformance to requirements, nothing more or
nothings less and certainly not goodness or elegance.
2. Quality has to be achieved by prevention and not something
close to it.
3. The performance standard must be zero defect and not
somethings close it.
4. The measurement of quality is the price of non-conformance, i.e
how much the defects in design, manufacture, installations and
service cost the compony. It is not indexes, grade one or grade
Philip B. Crosby (1926) two.
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 • He was President of American Society of Quality
Control (1961–1963). He said, “Quality is in its
essence a way of managing the organization”. He
suggested the following methodology for cycle time
reduction

FEIGENBAUM’S CYCLE TIME REDUCTIONS METHODOLOGY

1. Define process
2. List all activities
3. Flowchart the process
4. List the elapsed time for each activity.
5. Identify non-values adding tasks.
6. Eliminate all possible non-value adding tasks.
Armand V. Feigenbaum
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 • A Quality Guru from Japan, he strongly
advocated the use of cause and effect
diagrams to provide a true representation of
the organizational impacts and procedures.
He developed Fishbone or Ishikawa
diagram for cause and effect analysis.

Kauro Ishikawa (1915-1989)

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QUALITY CONTROL (QC)

Quality Control or QC may be defined as:

The operational techniques and activities that are used

to fulfill the requirements for quality.

Juran gives 3 steps of QC:

1. Evaluate actual operating performance
2. Compare actual performance to goals
3. Act on the difference
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 QUALITY ASSURANCE (QA)
• All the planned and systematic activities implemented within the quality
system, and demonstrated as needed, to provide adequate confidence that
an entity will fulfill the requirements for quality.
• The purpose of QA is to fulfill the quality requirements of an entity, i.e.
product or service, with adequate confidence by the supplier. This requires
implementation of all the activities planned for building quality into the
product. Such planned activities are to be implemented systematically within
the purview of a documented quality system. Building quality into the
products requires the following.
 QUALITY OF DESIGN
 QUALITY OF CONFORMANCE
 QUALITY OF PERFORMANCE
 QUALITY OF SERVICE
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QUALITY OF DESIGN- It refers to how well the product or service has been
designed to meet the current and future requirements of customers and add
value to all the stakeholders. The stakeholders for any organization are:
• Customers
• Employees
• Owners
• Society

QUALITY OF CONFORMACE- This indicates the consistency in delivering the

designed product. Product quality in turn depends on the quality of all
processes in the organization. Therefore, it involves all activities that will ensure
the conformance of the products to its requirements consistently.
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QUALITY OF PERFORMANCE- This indicates the consistency in
delivering the designed product. Product quality in turn depends on
the quality of all processes in the organization. Therefore, it involves
all activities that will ensure the conformance of the products to its
requirements consistently.

QUALITY OF SERVICE- Selling a product is not the end of the

business. It is the quality of associated services rendered that adds
value to the product. Quality of services involves all activities that
will enable the customer to procure and use the product without any
hassles.
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 QUALITY PLANNING (QP)

• In order to consistently meet customer requirements, the quality of 4Ms

namely — Man, Machine, Material and Methods need to be ensured. The
objectives should be established for all the functions. The functions include
suppliers, purchase, product design, engineering, production, in process
inspection, final inspection, after sales service, etc.

• Quality planning refers to the activities that establish the objectives and
requirements for quality. QP involves planning for the following about a
product or service or project or a contract:
• Quality objectives to be met
• Specific of QA/QC practices
• Resources needed
• Sequence of QA/QC activities
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 QUALITY IMPROVEMENT

• This process aims at attaining unprecedented

levels of performance, which are significantly
better than the past level.

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 STRATEGIC PLANNING

Strategic planning is important for any business. It involves

making plans for the following, in particular:
– Business value
– Investment in machinery and equipment
– Manpower to be hired
– Budget
– Product diversification
– Markets to served
– Strategies for improving profits, etc.
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 QUALITY MANAGEMENT (QM)

• According to ISO 9000 standards, Quality management comprises “All

activities of the overall management function that determine the quality
policy, objectives and responsibilities and implement them by means such
as quality planning, quality control, quality assurance and quality
improvement within the quality system.”
• The quality system consists of the organizational structure, procedures,
processes and resources needed to implement quality management.
The above brings out the following:
 The company must have an objective and policy for quality of the products and
services.
 The organization should plan for meeting the objectives.
 The plan should include QA, QC and methodology for improvement.
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 There must be a clear
organizational structure for
building quality into the
products and services with
necessary resources.
 The quality management
should be implemented
formally with well-defined
processes and procedures
and trained resources.
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 TOTAL QUALITY MANAGEMENT (TQM)

• It was Feigenbaum who coined the phrase “Total Quality

Control”. The concept is known in Japan as Company
Wide Quality Control (CWQC). In 1985, the Americans
came up with the term Total Quality Management (TQM)
to represent essentially the Japanese way of Quality
Management2 .

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 JUST-IN-TIME (JIT)

• Tai-ichi Ohno of Toyota motors refined an idea for

Just-In-Time. This means that at no stage of
manufacturing nobody or nothing waits for anything.
This is to ensure that there is no wastage of machinery,
materials and manpower. JIT focuses on right
scheduling so as to keep inventory as low as possible.
This requires a perfect partnership between supplier
and customer.

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 ISO 9000 STANDARDS

• ISO 9000 Standards were released for the first time in

the year 1987 to bring in system for quality in every
organization. The standard was revised in 1994 and later
in the year 2000. The standard in the latest version
advocates TQM and continuous process improvement.

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 DEMING AWARDS FOR QUALITY

• To express their gratefulness, Japanese instituted a

Quality Award in the name of Deming in the year 1951.
The award is now given not only to companies in Japan,
but even overseas who excel in quality.

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 COST OF QUALITY
Cost of Quality (COQ)
• Is defined as a methodology that allows an organization
to determine the extent to which it’s resources are used
for activities that prevent poor quality, that appraise the
quality of the organization’s products or services and that
result from internal and external failures.

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The cost of Quality can be divided into four categories.
They include:
• Prevention
• Appraisal
• Internal failure, and
• External failure

Within each of the four categories there are numerous

possible sources of cost related to good or poor quality.
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 Cost of quality

Cost of good quality Cost of poor quality

Prevention Appraisal costs Internal failure External failure

1. Process control 1. Incoming inspection 1. Process delay 1. Customer

2. Education/training 2. In-process inspection 2. Rework returns/complaints
3. Planning 3. Final inspection 3. Scrap 2. Warranty charges
4. Quality audits 4. Calibration 4. Retest 3. Lost
5. Supplier evaluation 5. Quality audits 5. Downtime opportunities/cust
6. Design review 6. Test materials 6. Loss of capacity omers
7. Risk assessment 7. Test products 7. Redesign 4. Rework after
8. Variation 34
installation
9. Problem solving 5. Late delivery
Why are quality cost important?

Applying the cost of quality can help a business understand

the number of resources that should be allocated to the
right channels to maintain customer satisfaction, quality and
ultimately profit.

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Why quality cost is important to TQM
In the understanding of total quality management, the
transition of the production of quality goods and services
may incur additional costs to businesses. However,
achieving a certain quality standard in the goods and
services produced will lead to increased competitiveness
and reduced costs.

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