National Institute of Business Management

Chennai - 020
EMBA/ MBA
Elective: Quality Systems Management (Part - 1)

1. Explain the concept and control variables, attributes of

statistical Quality Control
The word control usually stands for a process by means of which the actual
performance is observed and compared with some standard performance. If
there is a deviation in the observed performance from the standard
performance, corrective action is taken. When the term quality control is
defined it could be naturally understood that the control is made with respect
to the quality of the product or service. Inspection is only one of the stages
of quality control.
Quality control
The term quality control has a variety of meanings such as: 1. As mentioned earlier, quality control is the process through which the
actual quality is measured, it is compared with the standard quality and
corrective action is taken if there are deviations.

2. It is a systematic control of various factors that affect the quality of the

product. It depends on material, tools, machines, types of labour, working
conditions, measuring instruments etc.
3. Quality control can be defined as the entire collection of activities which
ensure that the operation will provide the optimum quality products at
minimum cost
4. It can also be defined as the tools, devices or skills through which quality
activities are carried out.
5. It is the department which devotes itself full time to quality functions.
6. The procedure for meeting the quality goals is termed as quality control.
7. It is a system, plan or method of approach to the solution of quality
problems.
8. As per A.Y. Feigorbaur, Total Quality control is:
An effective system for integrating the quality development, quality
maintenance and quality improvement efforts of the various groups in an
organization, so as to enable production and services at the most economical
levels which allow full customer satisfaction.
Steps involved in a Quality control programme are: 1. Formulate quality policy.

2. Work out details of product requirements, set the standards or

specifications based on customers preference, cost and profit.
3. Select inspection plan and set up procedure for checking.
4. Detect deviations from set standards or specifications.
5. Take corrective actions through proper authorities and make necessary
changes to achieve standards.
6. Decide on salvage method i.e., decide how the defective parts are
disposed of, scrap entirely or rework.
7. Co-ordination of quality programmes.
8. Developing quality consciousness in the organization.
Quality control is not a function of any single department or a person. It is
the primary responsibility of any supervisor to turn out work of acceptable
quality.
Aims or Objectives of Quality Control
1. To improve the companys income by making the product more
acceptable to the customers by providing long life, greater utility, aesthetic
aspects, maintainability etc.
2. To reduce companys cost through reduction of the losses due to defects.

3. To achieve interchange ability of manufacture in large-scale production.

4. To produce optimum quality at minimum price.
5. To ensure satisfaction of customers with products or services of high
quality level, to build customers goodwill and confidence in the reputation
of manufacturer.
6. To make inspection prompt to ensure quality control at proper stages to
ensure production of non-defective products.
7. Judging the conformity of the process to the established standards and
taking suitable actions when there are deviations.
8. To improve quality and productivity by process control, experimentation
and customers feedback.
9. Developing procedure for good vendor buyer relations.
10. Developing quality consciousness in the organization.
Statistical Quality Control (S.Q.C)
It is the application of statistical tools in the manufacturing process for the
purpose of quality control. In SQC technique attempt is made to seek out
systematic causes of variation as soon as they occur so that the actual
variation may be supposed to be due to the granted random causes.

Statistical quality control refers to the use of statistical methods in the

monitoring and maintaining of the quality of products and services.
With statistical quality control, you maintain a high level of quality without
testing each item in question. You can randomly test a set number of pieces
or

components

and

know

that

almost

all

will

be

acceptable.

Statistical Quality Control is statistical approach to the study of

manufacturing process variation for the purpose of improving the
effectiveness of the process.
The idea, is that by collecting relevant data for a statistically significant
sample size of something that was manufactured, you can use statistics to
predict what the yield of the process will be. This data in turn can be used to
improve the process.
Basic Categories of Statistical Quality Control (S.Q.C):
All the tools of SQC are helpful in evaluating the quality of services. SQC
uses different tools to analyze quality problem.
1) Descriptive Statistics
2) Statistical Process Control (SPC)
3) Acceptance Sampling
1. Descriptive Statistics:

Descriptive Statistics involves describing quality characteristics and

relationships.
2. Statistical process control (SPC):
The application of statistical techniques to determine whether a process is
functioning as desired
3. Acceptance Sampling:
The application of statistical techniques to determine whether a population
of items should be accepted or rejected based on inspection of a sample of
those items.
Variations of Statistical Quality Control (S.Q.C):
1. Allowable or cause variation
2. Assignable or preventable variation
Function of Statistical Quality Control (S.Q.C):
1. Evaluation of quality standards of incoming material, product process and
finished goods.
2. Judging the conformity of the process to establish standards taking
suitable action, when deviation are noted.

3. Evaluation of optimum quality, obtainable under given condition.

4. Improvement of quality and productivity by process control and
experimentation.
Main purpose of Statistical Quality Control (S.Q.C):
The main purpose of Statistical Quality Control (S.Q.C) is to divide
statistical method for separating allowable variation from preventable
variation.
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Explain the relationship between process capability and

specification limits.
Being in control of a manufacturing process using statistical process control
(SPC) is not enough. An "in-control" process can produce bad or out-of-spec
product. Manufacturing processes must meet or be able to achieve product
specifications. Further, product specifications must be based on customers
requirements.
Process capability is the repeatability and consistency of a manufacturing
process relative to the customer requirements in terms of specification limits
of a product parameter. This measure is used to objectively measure the
degree to which your process is or is not meeting the requirements.
Capability indices have been developed to graphically portray that measure.
Capability indices let you place the distribution of your process in relation to

the product specification limits. Capability indices should be used to

determine whether the process, given its natural variation, is capable of
meeting established specifications. It is also a measure of the
manufacturability of the product with the given processes.
Capability indices can be used to compare the product/process matches and
identify the poorest match (lowest capability). The poorest matches then can
be targeted on a priority basis for improvement.
If we sample a group of items periodically from a production run and
measure the desired specification parameter, we will get subgroup sample
distributions that can be compared to that parameter's specification limits.
Two examples of this are represented below.

The diagram on the left shows a series of sample distributions that fall inside
of and outside of the specification limit. This is an example of an unstable,
not capable process. The right side of the diagram shows all of the
distributions falling within the specification limits. This is an example of a
capable process.

Process capability can be expressed with an index. Assuming that the mean
of the process is centered on the target value, the process capability index Cp
can be used. Cp is a simple process capability index that relates the
allowable spread of the spec limits (spec range or the difference between the
upper spec limit, USL, and the lower specification limit, LSL) to the
measure of the actual, or natural, variation of the process, represented by 6
sigma, where sigma is the estimated process standard deviation.

If the process is in statistical control, via "normal" SPC charts, and the
process mean is centered on the target, then Cp can be calculated as follows:
Cp = (USL - LSL) / 6 sigma
Cp<1 means the process variation exceeds specification, and a significant
number of defects are being made.
Cp=1 means that the process is just meeting specifications. A minimum of .
3% defects will be made and more if the process is not centered.
Cp>1 means that the process variation is less than the specification,
however, defects might be made if the process is not centered on the target
value.

While Cp relates the spread of the process relative to the specification width,
it does not address how well the process average, X, is centered to the target
value. Cp is often referred to as process "potential".

Cpk measures not only the process variation with respect to allowable
specifications, it also considers the location of the process average.
Cpk is taken as the smaller of either Cpl or Cpu
Cpl = (X -LSL) / 3 sigma where X is the process mean
Cpu = (USL - X ) / 3 sigma where X is the process mean
Many companies are establishing specific process capability targets. They
may typically start with 1.33 for supplier qualification and have an expected
goal of 2.0. If the process is near normal and in statistical control, Cpk can
be used to estimate the expected percent of defective material.

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4. Explain the Quality Policy dimensions related to quality of

products.
An Organization should have a Quality Policy. This policy is meant to be an
outward statement of its commitment to its customers and to the provision of
quality products. The Quality Policy is a more abstract concept. It finds its
practical and measurable expression in the Quality Objectives. The Quality
Policy should be in line with the purpose and mission of the organization or
company it is written for. It also should be understandable by all members of
the organization, employees, managers as well as other stakeholders.
The Quality Policy definition of ISO 9000:2000 is "The overall intentions
and direction of an organization related to quality as formally expressed by
top management."
The format and content of the quality policy is the responsibility of the
individual company. Management or executive management determines who
writes and edits the individual quality policies. Some policies are
undoubtedly the responsibility of executive management, but many can be
handled primarily at the department level. However it is important to keep
the policies simple and in the same format. Policies should contain minimal
information on specific procedure and detailed information on structure,
responsibility and review. The total number of pages for each policy should

be kept to a minimum. Definitions within policies are important to ensure

that all parties are speaking same language. The policy should define the
responsibility of individual departments implementing the policies. Each
policy should be reviewed annually to ensure that it is current and applicable
to changing environment.
The definition of quality is often a hotly debated topic. While it may seem
intuitive, when we get right down to it, quality is a difficult concept to
define with any precision.
The most fundamental definition of a quality product is one that meets the
expectations of the customer. However, even this definition is too high level
to be considered adequate.
Dimensions of Quality
Eight dimensions of product quality management can be used at a strategic
level to analyze quality characteristics. The concept was defined by David
Garvin. Some of the dimensions are mutually reinforcing, whereas others are
notimprovement in one may be at the expense of others. Understanding
the trade-offs desired by customers among these dimensions can help build a
competitive advantage.
Garvin's eight dimensions can be summarized as follows:

Performance:
Performance refers to a product's primary operating characteristics. This
dimension of quality involves measurable attributes; brands can usually be
ranked objectively on individual aspects of performance.
Features:
Features are additional characteristics that enhance the appeal of the product
or service to the user.
Reliability:
Reliability is the likelihood that a product will not fail within a specific time
period. This is a key element for users who need the product to work without
fail.
Conformance:
Conformance is the precision with which the product or service meets the
specified standards.
Durability:
Durability measures the length of a products life. When the product can be
repaired, estimating durability is more complicated. The item will be used
until it is no longer economical to operate it. This happens when the repair
rate and the associated costs increase significantly.

Serviceability:
Serviceability is the speed with which the product can be put into service
when it breaks down, as well as the competence and the behavior of the
serviceperson.
Aesthetics:
Aesthetics is the subjective dimension indicating the kind of response a user
has to a product. It represents the individuals personal preference.
Perceived Quality:
Perceived Quality is the quality attributed to a good or service based on
indirect measures.
Dimension 1: Performance
Does the product or service do what it is supposed to do, within its defined
tolerances?
Performance is often a source of contention between customers and
suppliers, particularly when deliverables are not adequately defined within
specifications.
The performance of a product often influences profitability or reputation of
the end-user. As such, many contracts or specifications include damages
related to inadequate performance. This dimension of quality involves

measurable attributes, brands can usually be ranked objectively on

individual aspects of performance. Overall performance rankings, however,
are more difficult to develop, especially when they involve benefits that not
every consumer needs. Some performance standards are based on subjective
preferences, but the preferences are so universal that they have the force of
an objective standard
Dimension 2: Features
Second dimension of quality that is often a secondary aspect of performance.
Features are the bells and whistles of products and services, those
characteristics that supplement their basic functioning. The line separating
primary performance characteristics from secondary features is often
difficult to draw. Superior quality is less a reflection of the availability of
particular features than of the total number of options available.
Does the product or services possess all of the features specified, or required
for its intended purpose?
While this dimension may seem obvious, performance specifications rarely
define the features required in a product. Thus, its important that suppliers
designing product or services from performance specifications are familiar
with its intended uses, and maintain close relationships with the end-users.

Dimension 3: Reliability
This dimension reflects the probability of a product malfunctioning or
failing within a specified time period. Among the most common measures of
reliability are the mean time to first failure, the mean time between failures,
and the failure rate per unit time. Reliability normally becomes more
important to consumers as downtime and maintenance become more
expensive. Reliable equipment can mean the difference between a good year
and spoiled crops. But consumers in other markets are more attuned than
ever to product reliability.
Will the product consistently perform within specifications?
Reliability may be closely related to performance. For instance, a product
specification may define parameters for up-time, or acceptable failure rates.
Reliability is a major contributor to brand or company image, and is
considered a fundamental dimension of quality by most end-users.
Dimension 4: Conformance
A related dimension of quality is conformance, or the degree to which a
products design and operating characteristics meet established standards.

All products and services involve specifications of some sort. When new
designs or models are developed, dimensions are set for parts and purity
standards for materials.
One drawback of this approach is the problem of tolerance stack-up: when
two or more parts are to be fit together, the size of their tolerances often
determines how well they will match. Should one part fall at a lower limit of
its specification, and a matching part at its upper limit, a tight fit is unlikely.
Even if the parts are rated acceptable initially, the link between them is likely
to wear more quickly than one made from parts whose dimensions have
been centered more exactly.
Does the product or service conform to the specification?
If its developed based on a performance specification, does it perform as
specified? If its developed based on a design specification, does it possess
all of the features defined?
Dimension 5: Durability
A measure of product life, durability has both economic and technical
dimensions. Technically, durability can be defined as the amount of use one
gets from a product before it deteriorates. After so many hours of use, the
filament of a light bulb burns up and the bulb must be replaced.

Durability, then, may be defined as the amount of use one gets from a
product before it breaks down and replacement is preferable to continued
repair.
This approach to durability has two important implications. First, it suggests
that durability and reliability are closely linked. Second, this approach
implies that durability figures should be interpreted with care. An increase in
product life may not be the result of technical improvements or the use of
longer-lived materials. Rather, the underlying economic environment simply
may have changed.
How long will the product perform or last, and under what conditions?
Durability is closely related to warranty. Requirements for product durability
are often included within procurement contracts and specifications.
For instance, fighter aircraft procured to operate from aircraft carriers
include design criteria intended to improve their durability in the demanding
naval environment.
Dimension 6: Serviceability
A sixth dimension of quality is serviceability, or the speed, courtesy,
competence, and ease of repair. Consumers are concerned not only about a
product breaking down but also about the time before service is restored, the

timeliness with which service appointments are kept, the nature of dealings
with service personnel, and the frequency with which service calls or repairs
fail to correct outstanding problems. In those cases where problems are not
immediately resolved and complaints are filed, a companys complainthandling procedures are also likely to affect customers ultimate evaluation
of product and service quality.
Is the product relatively easy to maintain and repair?
As end users become more focused on Total Cost of Ownership than simple
procurement costs, serviceability (as well as reliability) is becoming an
increasingly important dimension of quality and criteria for product
selection.
Dimension 7: Aesthetics
The final two dimensions of quality are the most subjective. Aesthetics
how a product looks, feels, sounds, tastes, or smellsis clearly a matter of
personal judgment and a reflection of individual preference. Nevertheless,
there appear to be some patterns in consumers rankings of products on the
basis of taste.
The aesthetics dimension differs from subjective criteria pertaining to
performancethe quiet car engine, sayin that aesthetic choices are not

nearly universal. Not all people prefer rich and full flavor or even agree on
what it means. Companies therefore have to search for a niche. On this
dimension of quality, it is impossible to please everyone.
The way a product looks is important to end-users. The aesthetic properties
of a product contribute to a companys or brands identity. Faults or defects
in a product that diminish its aesthetic properties, even those that do not
reduce or alter other dimensions of quality, are often cause for rejection.
Dimension 8: Perception
Consumers do not always have complete information about a products or
services attributes; indirect measures may be their only basis for comparing
brands. A products durability, for example, can seldom be observed directly;
it usually must be inferred from various tangible and intangible aspects of
the product. Reputation is the primary stuff of perceived quality. Its power
comes from an unstated analogy: that the quality of products today is similar
to the quality of products yesterday, or the quality of goods in a new product
line is similar to the quality of a companys established products.
Perception is reality. The product or service may possess adequate or even
superior dimensions of quality, but still fall victim to negative customer or
public perceptions.

This completes the list of the eight dimensions of quality. The most
traditional notionsconformance and reliabilityremain important, but
they are subsumed within a broader strategic framework. A companys first
challenge is to use this framework to explore the opportunities it has to
distinguish its products from another companys wares.
A company need not pursue all eight dimensions simultaneously. In fact, that
is seldom possible unless it intends to charge unreasonably high prices.
Technological limitations may impose a further constraint. In some cases, a
product or service can be improved in one dimension of quality only if it
becomes worse in another.

5. Write an essay on Quality Characteristics.

The definitions of quality could be appreciated in a better way if we
understand the characteristics of quality. Every product and service has a set
of characteristics which help in identifying its quality. Quality characteristics
are the properties of a product or a service, such as size, speed of delivery, or
friendliness, for example, which are required to satisfy the customers. These
quality characteristics can be viewed from two perspectives. Firstly, they are
the characteristics that customers expect or require against which they assess

the product or service. Secondly, they are the set of measurable variables
and/or attributes which comprise the specification that the organization uses
to assess its production capability and to ensure that the specifications are
met. Careful market research and clear product offerings help to ensure that
these two perspectives are identical. There are two types of product quality
characteristics, variables, and attributes. Variables are those quality
characteristics that can be measured on a continuous scale, for example,
length or weight. Attributes are those characteristics that are either present or
absent, for example, acceptable or not acceptable, within tolerance or out of
tolerance. Most operations texts explain in some detail how variables and
attributes can be measured using statistical process control (SPC) and
statistical quality control (SQC). Few, however, provide comprehensive lists
of product quality characteristics in the same way as service quality
characteristics.
The Product & Process Design pillar of the CQE Body of Knowledge is the
critical first step in delivering a high quality product that will satisfy your
customers.
Delivering a high quality product starts with capturing your customers needs
and then translating those needs into Products Features, which are also
known as Quality Characteristics.

Your Quality Characteristics are the features about your product that deliver
the functional performance that your customers need, want and are willing to
pay for.
These are the features about your product that your customers find valuable.
The best way to translate your customers needs into product features is the
use of the Quality Function Deployment tool (House of Quality).
In the framework of evaluating grammar checkers we suggest the following
specializations of the qualitative characteristics, based on ISO 9126:
Functionality:
It is a degree to which the equipment performs its intended function. The
way the system responds to errors is critical in this characteristic. This is
highly important for clinical equipments where minor error could be
disastrous. The system should detect errors and specify what they are,
thereby enabling the user to correct them. The system should not specify
non-errors. The system should be able to handle combinations of errors to
some extent. The present study focuses on this characteristic, since this is the
one that has to do with NLP.
Usability:

The user interface should have a form that makes the system easy and
efficient to use, e.g.
Dialogue;
Windows-based;
Text replacement;
Marked-up copy.
Reliability:
It is the capability of the product or service to perform as intended under
normal conditions without unexpected failure.
The system should not crash or loop;
The system should always specify the same grammar error in the same
context the same way.
This characteristic will not be tested explicitly.
In addition to the characteristics proposed by ISO 9126, we suggest:
Customisability:
The system should allow the user a certain control over the functionality.

Customisability could be said to be part of functionality, but in our opinion it

is a separate characteristic.
Performance:
The performance of product or service should comply with the user needs
Relevance:
It is the characteristics of a product or service by which it meets the actual
needs of the user; it should be applicable, pertinent and appropriate to its
intended use.
Timeliness:
The characteristic of timeliness stipulates that the product or service is
delivered in time when it is needed to solve a particular problem and not
after the problem is solved. This characteristic is very important for health
and emergency relief work.
Suitability:
Suitability of a product or service is the fitness of its use, its appropriateness
and correctness to the intended industry, for example the agricultural
equipment has to be designed to perform under conditions the user will use it
on.
Completeness:

The service provided should be complete and include the entire scope of
services. For example completeness of a training session.

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