Principles of Quality Instructor: Peter Churchill

Session 1 Objectives
• To understand why organizations feel the

need to change their ways of managing
and doing things.
• To determine the causes and

consequences of unquality
• To identify the conditions of success and

the causes of failures of an attempt to
introduce change in an organization,
such as the total quality approach.
Session 1 – The Total Quality Approach
• The concept of quality extends beyond

product quality
• Everyone in the organization is involved
in the quality improvement process.
• Top management demonstrate strong
involvement and leadership.
• Emphasis on attaining and surpassing
customer satisfaction.
• External partners participate.
Principles of Quality
Instructor: Peter Churchill
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Session 1 – Why do TQM Efforts Fail?
• 80% failure rate.

• Viewed as a philosophy rather than a
practical approach.
• Knowing - doing gap.
• Failure to meet five conditions
– Top Management willing and capable of
changing
– Accurate definition of quality and total quality.
– Knowing how to implement total quality.
– Knowing how to achieve total quality.
– Knowing how to maintain total quality.
Session 1 – The Importance of Quality
• What is driving quality initiatives

– Global competition
– Economic recessions
– High Canadian Dollar
• Quality = improved ROI
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Session 1 – The Cost of Un-quality
• Poor quality costs estimated at 5% - 20%

- ????
• Chain reaction effect.
• Overquality
• Examples of Unquality and overquality?
Session 2
Redefining Quality & Total Quality
• What is the difference between total

quality and quality?
• Experts cannot agree.
• Many define based on product quality

and customer complaints
• Different definition depending on function
• Ultimately the customers view of quality

over rides others.
– Needs, unquality, overquality
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Session 2
Defining Product Quality
• Suitability for intended use

• Functional or Non-Functional
• Main Function and Secondary Function
– Durability
– Reliability
– Availability for use
– Uniformity
– Maintainability
– Dependability (reliable and maintainable)
– Interchangeability
– Safety
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Session 2
Intrinsic & Extrinsic Quality
• Intrinsic characteristics
– Suitability, durability, reliability, uniformity etc.
• Extrinsic quality
– Perceived quality
• Student examples of Intrinsic & Extrinsic
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Session 2
QVALITY
• Quality – product quality
• Volume – delivery in required
qty,size,etc.
• Administration – systems and
procedures to facilitate all customer
experiences.
• Location – suitable to the customer.
• Interrelationships – treat customer well..
• Image – good corporate citizen,
reputation, etc.
• Timely delivery
• Yield – maximum value for money
• QVALITY – customer focused,
measurable,
• Who defines value??
Session 2
Delighting the Customer
• ACE – Above Customer Expectations
• Offering goods or services that the

customer needs but doesn’t expect.
– Examples??
• Mass production to mass customization

– Unlimited choices
• Do not confuse ACE with Overquality
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Session 2
TQ Triad
• Shareholders
– Quality return on investment
• Employees
– Quality of life
• Customers
– QVALITY, Delight
• Discuss the impact on total quality if

TRIAD imbalanced
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Session 3
TQM – an Extraversive Approach
OBJECTIVES
• To differentiate between quality control,

quality assurance, and quality
management.
• To introduce introversive and

extraversive management concepts.
• To provide an understanding of the TQM

concept and components.
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Session 3
Traditional Management and Total
Quality
• TQM foundation of Japans economic

success
• Majority of techniques and concepts
developed in the US
• When used in North America techniques
produced less than satisfactory results.
• Why have Western companies failed?
– They don’t know what TQM is all about?
– Class examples
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Session 3
From QC to TQM
• Quality Control
– Quality limited to product or service
– Quality is a technical function – quality staff
are responsible for quality
– Quality cops or watchdogs trying to catch the
guilty
– After the fact.
• Total Quality Management
– Participatory management and teamwork
– Individuals responsible for their own QC
– Quality department supports and assists other
departments
– Satisfy the needs of the TQ Triad
– Collaboration in Supply Chain
• Total quality is achieved through TQM,
practiced everywhere, by everyone, at all
times.
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Session 3
TQM
• Quality does not happen by chance
– It has to be managed like other aspects of the
business.
– TQM includes all activities required to achieve
desired quality, on time, at best possible price.
• Planning – defining quality and means of
achieving it.
• Organization – administrative structure,
systems, resources
• Direction – human aspects of
management.
• QC – to detect errors or defects
• QA – preventative activities
– Ensure planning, organization, direction
carried out efficiently
– Verifying activities are being carried out by
auditing systems, procedures, and products
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Session 3
TQM
• Clear distinction required between
QM,QA, QC
• Quality Management – required quality
can be attained.
• TQM – total quality can be achieved and
maintained
• TQM must balance and satisfy the needs
of the three stakeholders.
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Session 3
Defining TQM
• TQM is based on a management

philosophy
– Profit oriented, customer focused, people
centered, partner assisted, environmentally
conscious
• Three Dimensions
– Human Aspect
• Most important
• Has to start at top and go down to every worker
• Objective to start and maintain a TQ process
– Logical Aspect
• Customer defined
• Total quality defined and managed
• Continually improved Business Processes
• Everyone must be convinced it will work.
• Everyone is a link in the total quality chain
– Technology & Systems
• methodologies, tools, techniques
• BPR, SPC, ISO
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Session 3
PDCA
• Plan – review current performance,
gather data on key problems, devise
potential solutions
• Do – Implement the planned solution
(pilot)
• Check – Measure the results
• Act – Based on pilot, refine and expand
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Session 3
DMAIC–Six Sigma PDCA
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The SIX SIGMA WAY, Pande,Neuman,Cavanagh
Session 4 – Implementing TQM

Objectives
• To Learn a step-by-step process to

implement TQM
• To learn how to evaluate the TQM

implementation process.
• To learn how to take corrective actions

during the implementation process.
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Pitfalls to Avoid
10 Essential Conditions
1. Top Management
– Will to implement
– Conviction that TQM is critical to company
success
– Personal commitment to C.I.
2. Concrete, measurable long term vision of TQ

beyond goods and services to TQ Triad
3. CEO has personal responsibility for TQ – visibly

practice and reinforce TQ
4. CEO & Top Mgt. must share conviction that

teamwork and participation from everyone is
required
5. All people in company, shareholders, and

customers – must be mobilized, sensitized, and
educated in the necessity of TQM
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Pitfalls to Avoid
6. People must receive appropriate training
7. People must receive reinforcement

– Formal recognition from management and peers
– Awards or rewards
– Periodic gatherings to celebrate success
8. Open and frank communication on the part of

management, and appropriate dissemination of
information to employees
9. Upstream and downstream partners must be

educated to benefit of TQM for their own good
as well a for your companies.
10. Customers and stockholders must be educated

about the necessity and usefulness of long term
TQM for their benefit.
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Program for Implementing
Prerequisites to TQM Implementation
1. Sensitizing and Familiarizing top management

– Remember how important management is in
implementation
– CEO attitude directly related to success.
2. Create a TQM Steering Committee
– Generally members from senior management
– Purpose to create a focus on TQM
– Prevent TQM from getting lost in the other day to
day management issues.
3. Appointing a TQ Coordinator
– Reports to and remains in contact with CEO
– TQ coordinators responsible for finding and
involving people within company to help in
various stages of implementation.
4. Mobilization Campaign
– Convey urgency and imminence of action
– Everyone in company galvanized into action
– Rouse personal needs to do something
– Demystify and popularize TQM concepts 23
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Preparing for Start Up
5. Initiating a TQ Diagnosis
– External – shareholders, customers, etc.
– Internal – people and processes
– Identify actual and potential customers (internal
and external)
– Define total quality
• As expressed by customer
• As compared to industry (benchmarking)
• As compared to competitor performance
– Evaluation of people and processes
– Devising diagnostic tools
6. Establish a Training Program
– Managers – to apply a new mgt style
– All employees to learn teamwork and applying
new tools and techniques
7. Organizing for Total Quality
– Develop formal structure
– People organized into TQ teams
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Starting the Process
8. The Launch
– 75% of success change in attitude, 25%
procedures and techniques
– Gradual implementation – initial small project in
each area.
– Fine tune carried out during implementation
9. Monitoring and Evaluating Start-up
– Start-up must be carefully monitored
– Don’t get caught up in mechanics
– Halt process if more training required
– Reinforce motivation for participants
– Gradually introduce into all departments
10. Setting up Continuous Improvement Processes
– Reinforcement fuels continuous progress
– Emphasizes pride in a job well done
– Must be constant and unending from all levels of
the organization.
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Session 5 CI & Re-engineering

Objectives
• Defining continuous improvement
• Defining Re-engineering (Innovation)
• Defining the different levels of re-

engineering
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TQ or Business Re-engineering?
• Re-engineering is not necessarily TQ

– Many Non – TQ companies have gone
through re-engineering
• Traditional view of CI is steady
methodical improvements
– Applies to existing work processes.
– Non-linear improvement
– Law of diminishing return
• Traditional view of BR is major radical
change.
– Not always associated with TQ
– Abandoning existing processes and
replacing with new processes.
• More realistic view of TQ
– Involves improvement in General
– Kaizen
– Includes both CI and BR
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TQ Oriented Re-engineering
• Traditional organizations consist of
functional silos.
– Throw it over the fence mentality.
• Re-engineering focuses on complete
processes as they weave through
different functions.
– Many BR projects focused on cost-cutting
only.
• TQ Oriented Re-engineering
– All processes linked to enhancing
profitability through fulfillment of customer
needs.
• 85% or BR initiatives have failed to
deliver expected results
– Not linked to customer satisfaction or
profitability.
– Culture of organization not changed to
match processes.
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Levels of Re-engineering
• Work Process Re-engineering

– Activities through which a major function is
achieved
• Processing an order, hiring an employee etc.
• Business Process Re-engineering
– All the activities that directly or indirectly
contribute towards satisfying needs of
customers while generating ROI
– All the work processes of the company
• Business Re-engineering
– Deals with all aspects of running the
business
– Management style, organizational structure,
business philosophy & strategies etc.
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Anatomy of a Business Process
A business process is a collection of interrelated
work tasks, initiated in response to an event,
that achieves a specific result for the customer
of the process.
• Characteristics
– Measurable, might be automated, different
levels, must have customers.
• Process Enablers
– Workflow design
– Technology
– Motivation and Measurement
– Human Resources
– Policies and Rules
– Facilities
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Details of the Mainstream Process
• Mainstream process consists of:

– Product quality cycle / process
– A1 cycle (admin and customer
interrelationships
• Product Quality Cycle
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During each phase of every stage the following

objectives are targeted.
• Phase 1
– Specifications = Need, the product developed
will meet the needs for which it was designed
• Phase 2
– Qualification of workforce, equipment, and
suppliers
• Phase 3
– Product = specification, product conforms to
spec.
• Phase 4
– Product = needs, suitable for intended use.
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Causes of Unquality
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A-1Cycle
• Customer Satisfaction also includes:

– administrative procedures imposed on customer
– Interrelationships of customers with company,
staff, and representatives
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Shareholder & People Satisfaction
• Finance Processes
– Shareholder oriented
– Objective to optimize returns
– Financial policies
– Measured in ROI, dividends, ROE
• People Management
– Employees more than a resource that can
be used such as financial and physical
resources
– Process must help to achieve a quality of
life for people within and outside work
• Integration of Product Quality, A1,
Financial, and People Mgt. processes
that allow achievement and
maintenance of TQ
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Session 6 TQM Practices
OBJECTIVES
• To familiarize participants with

management practices that can be
applied to achieve and maintain total
quality.
• To show where these techniques can

be applied
• To learn how to apply some problem-

solving techniques
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• TQM and Technology
– TQM practices (the “how”) for achieving and maintaining TQ.
• TQ achieved and maintained by improving
performance.
– Problems must be identified and solved
• In Extraversive companies problems are any reason
for dissatisfaction of shareholders or customers.
• Cause and Consequence or Effect
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TQM Practices
• Identifying customers needs (QVALITY) and
evaluating their satisfaction
• Policy Development
• Benchmarking
• Cross functional teams
• Quality function deployment
– Translate customers requirements into company
terms.
• Failure Mode and Effect Analysis
– Identify all possible failures that could occur in
product life
– Types of failures, probability of occurrence,
degree of severity
• Poka-Yoka concept
– Engineering in safeguards to reduce or eliminate
human error.
• Concurrent Engineering
• Horizontal organization
• SPC
• ABC / ABM
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Problem diagnosis tools

– Brainstorming
– Nominal Group Technique
– Pareto Diagram and Analysis
– Ishikawa’s Cause and Effect
Diagram
– Five Why’s
– Flowcharting
– Surveys, focus groups
– Control Charts
– Scatter Diagrams
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Session 7 TQ in Services
OBJECTIVES
• To understand the similarities and

differences between manufacturing and
service
• How to define quality for a service
• How to apply TQM in a service

environment
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Categorizing Services
• Internal Services
• External Services
• Main Services
– Central Activity – reason for existence
• Ancillary services
– Support main service
Un-quality in Services
• Why is there more unquality in services
than goods??
• Harder to define or measure.
• Customers tolerant attitude
• Has much changed since the text was
written? (1996)
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Characteristics of Quality in Services
• Is the objective of a service any

different than a product?
– Must satisfy TQ Triad
– Must meet QVALITY
– Customers must be delighted
• What is different
– Services not always tangible
– Cannot be stocked
– Cannot be inspected or repaired before
delivery
– Service quality harder to precisely specify
and measure
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Product Quality Cycle in Services
• Services and Products must meet the

customers needs and intended use.
• Can be functional or non-functional
• Can be intrinsic or extrinsic
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Session 9
Human Aspect of TQ
Objectives
• To understand the importance of the

human aspects in the implementation
and practice of total quality concepts
and techniques.
• To familiarize the participants with the

necessity and means of mobilizing the
people in the organization
• To present the advantage of teamwork

and skill based pay.
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Session 9
Human Aspect of TQ
• Are people the most important Asset in

a company?
– They are the company
• To achieve TQ you have to modify
behaviors.
• Logically prove why TQ will benefit
them.
• Must provide the Skills & Knowledge
• Motivating People for TQ
– People will produce TQ to satisfy
themselves (WIIFM)
– Must be clear link between TQ and needs of
people.
– Maslow’s hierarchy of needs impact TQ
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Session 9
Human Aspects of TQ
Pre-requisites for Launching Motivational

Programs
• Make sure problem a human problem - not
machine, process etc.
STRENGTHS
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Session 9
Human Aspect of TQ
Participative Management
• Move from authoritarian – consultative
– participative.
• Principles
– Generates motivation
– Teamwork
– The team as a decision making unit
– Requires proper coordination
– Collaboration between all levels
– Relationships of trust vs authority
– Free circulation of information
– Self control vs mgt by domination
– Individual responsible for aligned specific
objectives.
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Session 9
Human Aspect of TQ
Total Quality Teams

• Teamwork essential to TQ Approach
– Continuous Improvement Teams
– Reengineering teams
– Mandatory participation
• Teamwork can fail

– Lack of management support or
involvement
– Used only to solve specific problems
– Used as a stop gap to achieve short term
financial gains
• Teams for TQ or Re-engineering

– 4-12 members
– All work documented
– TQ Improvement – typically functional
– Re-engineering – typically cross functional
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Session 9
Human Aspect of TQ
Team Spirit in TQ
• Must be customer focused
• Must have a common cause / objective
• How many companies can generate common
cause without a crisis?
Building Teams
• Employees must learn how to work as a team
• Collaboration and Participation a must
• Focused tasks and deliverables
• Copes with disagreement – does not avoid
conflict
– Avoids Group Think
• Decision by Consensus
• Extremely difficult for people without team
experience.
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Session 9
Human Aspect of TQ
Mobilization & Reinforcement
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Session 9
Human Aspect of TQ
• Skill Based Pay

– Vertical – upstream or downstream
knowledge
– Horizontal – diverse skills of similar difficulty
– Specialized
– Comparison Chart – P180
• Training Programs Leading to TQ

– Philosophy
– Techniques
– Awareness
– Familiarization
– All employees participate
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Session 9
Human Aspect of TQ
Gallup Q12 - Engagement

1. Do I know what is expected of me at
work?
2. Do I have the materials and equipment
I need to do my work right?
3. Do I have the opportunity to do what I
do best every day?
4. In the last seven days, have I received
recognition or praise for doing good
work?
5. Does my supervisor, or someone at
work, seem to care about me as a
person?
6. Is there someone at work who
encourages my development?
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Session 9
Human Aspect of TQ
Gallup Q12 - Engagement

7. At work, do my opinions count?
8. Does the mission / purpose of my
company make me feel my job is
important?
9. Are my co-workers committed to doing
quality work?
10. Do I have a best friend at work?
11. In the last six months, has someone at
work talked to me about my progress?
12. This last year, have I had opportunities
at work to learn and grow?
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Session 10
Planning For TQ
Objectives
• To understand the process

that preceded total quality
planning.
• To understand the total
quality planning process
• To get acquainted with, and
apply, some TQM planning
techniques.
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Session 10
Planning For TQ
• Must take into consideration the triad!!

• Vision – what the company wants to be
• Values – the guidelines for running the
business
• Mission – transforming the vision into
explicit and practical terms:
– Customers
– Products or Services
– Markets
– Concern for survival / profitability
– Philosophy
– Self concept
– Concern for Public Image
– Concern for Employees
• Culture – comprised of VVM – evolves
and changes.
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Session 10
Launching the Planning Process
• Aims at materializing (short and long

term) Vision, Mission, Values
1. Diagnosis
2. Objectives
3. Strategy
4. Plan of Action
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Session 10
Total Quality Diagnosis – Where are We?
• Measuring the degree of satisfaction of

owner / shareholders
• Measuring degree of satisfaction /
dissatisfaction of customers – actual
and potential
• Measuring the degree of satisfaction of
employees
• Assessing the effectiveness of the
companies systems, processes,
equipment etc.
• Evaluating upstream and downstream
relationships
• Measure degree of caring for
environmental issues related to
business
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Session 10
Total Quality Diagnosis – Where are We?
• Defining The Customer & Satisfaction

– Actual and Potential
– Distributors, wholesalers, retailers external
partners and not the real customer.
– Determine needs of customer – QVALITY
and ACE
– Measure past performance – develop some
key indicators.
– Compare your performance to competitors
and industry.
• Diagnosis must examine all links of the
Product Cycle and the A1 cycle.
• Diagnosis helps identify where and how
much improvement is needed.
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Session 10
Total Quality Objectives – Where Do We
Want to Go?
• Benchmarking
– Measuring your performance against best in
class companies
– Determining how the BIC achieves their
performance levels
– Using the information as a basis for you own
targets, strategies, implementation.
• Focusing
– You cannot do everything at once!
– Choose 1 – 3 characteristics to chase
– Do not totally neglect the others
• Backtracking
– Very similar to reverse engineering
– Look outward at what the customer /
shareholder wants and work backwards
identifying the wrong turns.
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Session 10
Total Quality Objectives – Where Do We
Want to Go?
Internal Customers or Internal Partners?
• Many people in company do not have
direct contact with end customer
• The internal customer concept can
work against teamwork.
– One works for a customer vs a team works
in partnership
• Internal Partner a better approach
– Stresses the importance of collaboration,
and working towards a common goal.
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Session 10
Total Quality Objectives – The Strategy
How Do We Achieve the Desired Objectives
• Identifies the means to achieve the

objectives in each of the six areas.
• Must be coordinated throughout the
company.
Action Planning – How do you Implement?

• Puts the strategy to work
– Identifies specific activities to be undertaken
– Who is responsible
– Time limits
– The budget
– Methods and procedures
– Control and evaluation
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Session 11
Organizing for Total Quality
Objectives
• To understand the role of a TQ

department
• To get acquainted with new

organizational trends.
• To become familiar with horizontal vs

traditional organizations.
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Session 11
Who is responsible for Quality?
• QC Line or Staff Role?

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Session 11
• Responsibility Grid
– Text used Decision Maker, Participation, Consult,
Inform
– RACI - Responsible, Accountable, Consults,
Informs
– RASCI – adds Supervises
• From Quality to TQ
– Traditional organization functionally based,
vertical hierarchy
– TQ companies organize around business
processes
• Sequential / Cascade approach
– Companies operate in a sequential process
– Increase risk of communication distortion
– Very departmentalized
• Parallel Approach
– Work happens concurrently
– All departments in direct contact with customer.
– Utilizes cross functional teams
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Session 11
• Pyramidal Organization
– Based on Cascade approach
– Departmentalized
– Managers for each department
– Multiple org levels
– Communication tends to be vertical
– Functional authority over counterpart line
departments
– No one department in charge of a process
• Matrix Organization
– Product or Project Mgr. Place in charge of
the whole process
– Employees could have two bosses
– Employees typically more loyal to functional
boss vs project boss
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Session 11
• New Organizational Trends

– Replacement of pyramid shaped org
structure
– Organizing around different components of
the business process
• Use functional teams
• Using cross functional teams
• Diamond Shaped Organizations
– P226 – Customer focused
– Two Pyramids – center line the contact line
• Daisy shaped
– Flat organization
– CEO works with Team Managers
– Team Managers work with teams
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Session 11
• Consensus Management
– Decisions made by groups instead of
individuals
– Management by consensus
– Organizations networked teams of educated
knowledge workers.
– Authority shifting from positions of power to
those having the knowledge and ability to
apply
• Consensus is a state of mutual

agreement
– Examples??
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Session 12
Total Quality Assessment and Control
Objectives
• To understand the necessity and
means to assess and control total
quality
• To get acquainted with SPC
• To become familiar with the costs

related to total quality,
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Session 12

System
• Must extend throughout all of companies
functions and Phases
• Create
– Goal of product specs matching customer needs
– Methods of assessment and control
• Opinion polls and surveys
• Meetings between company and customer
• Producibility studies
• Tests, prototypes, simulations
• Verification of design and spec to detect errors
• Checks to verify availability of material,
components etc.
• Preparation
– Verifying the quality
– Qualification of the workforce, equipment,
suppliers
– Assessing process capability
• Assessment and control must extend to all
“moment of truth” areas
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Session 12
Controlling Product Quality in

Manufacturing
• What should be controlled?
– Essential characteristics must be identified
• Who Controls?
– Operators, suppliers, QC department, customers
representatives.
• How to Control
– Visual inspections, dimensional inspections
– Destructive or Non-destructive testing
– Control by attributes
• Attributes – presence or absence
• Attribute outcome – accept or reject
– Control by variables
• Measurement of one or more characteristics
• Can provide a greater amount of information
• Examples – length of life, output etc.
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Session 12
Controlling Product Quality in

Manufacturing
• Where Control is applied
– Examples P 250
• How Often Control is done

– Regular or sporadic
– Only after complaints or incident of error.
• How much to control

– 100% control
– Sampling
– Not at all
• How can this be applied in the service industry?
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Session 12
The Quality Index

• Just counting defects does not identify the
relative importance of the each defect.
• Some defects are more critical than others.
• Defect weighting must be tailored to specific
product or service. Book example:
– Critical
– Serious
– Major
– Minor
• Each category assigned number of demerits
• Quality index = Total demerits / units produced
– Scale is Demerits per unit
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Session 12
Direct and Indirect Costs Related to Total Quality
• Costs related to not satisfying the Q

requirements p264
• Costs related to not satisfying the VALITY

requirements
• Internal failure costs
• Costs common to external and internal failures
• Prevention and Appraisal costs
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Session 12
The TQ Curve
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Session 12
Statistical Process Control
• Method of monitoring process variation

– Identify causes for process variation and resolve
them.
• Allows you to determine “unique” vs “common”
causes of variation.
• Common or non-assignable causes
– Random variation
– Present in processes that are stable, consistent
and repeatable.
– Processes stable and predictable
– Distribution of process remains stable
• Unique or Assignable cause Variation

– Created by non-normal sources
– Result in process distribution changing over time
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Session 12
• Frequency distributions
– Use example of marks
– Normal or bell curve
– 68% of results will be +/- 1 SD
– 95% of results will be +/- 2 SD
– 99.7% of results will be +/- 3 SD
• Processes with common cause variations will
have a distribution similar to a normal curve.
• GO / NO GO and SPC
– Product falls within specified tolerance range
– Different concept than Acceptable Quality Level!
– SPC – to check if variations of a process are due
to common cause or unique ones.
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Session 12
• Control Charts
– Central axis and two control limits
– UCL – upper control limit
– LCL – lower control limit
– Most common charts are mean or x bar and
range.
• Steps in building charts
– Calculate the average value of each sample
– Calculate the range of each sample
– Add up the sample averages and calculate the
average of averages x bar bar
– Calculate the average of all ranges
– Calculate the LCL and UCL for the mean
– Calculate the UCL and LCL for the range
– Create a Mean chart and a range chart with UCL
and LCL’s
– Plot data
– Interpret
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Session 12
• Process capability
– Capability index
– CP should be greater than 1
ToleranceSpan
CP =
Pr ocessSpread
Process Spread =
6R
d2
81
82
41
83
Sample Measurements Sum Average X Range R

TEST 1 2 3 4 5
1 7.6 7.7 7.6 7.5 7.5
2 7.7 7.8 7.7 7.7 7.8
3 7.7 7.6 7.7 7.8 7.7
4 7.7 7.6 7.7 7.8 7.7
5 7.5 7.8 7.6 7.7 7.7
6 7.6 7.5 7.7 7.9 7.7
7 7.6 7.7 7.7 7.6 7.7
8 7.7 7.8 7.7 7.5 7.7
9 7.6 7.7 7.6 7.5 7.6
10 7.6 7.6 7.6 7.5 7.7
11 7.6 7.6 7.9 7.5 7.5
12 7.9 7.9 7.9 7.8 7.9
13 7.7 7.7 7.9 7.8 7.7
14 7.6 7.6 7.7 7.4 7.8
15 7.5 7.38 7.6 7.7 7.6
16 7.6 7.6 7.6 7.9 7.4
Mean of averages X
Mean of Ranges R
84
42
85
Session 13
TQ Assurance and Purchasing Mgt.
Objectives
• To understand the basic concepts of

quality assurance
• To examine the role of purchasing in

quality assurance
• To become familiar with total quality

aspects of the supplier / purchaser
relationship
86
43
Session 13
Quality Assurance – Concept and
Definition
• Setting up a system that can give the customer
the assurance that no poor quality will occur in
design, production, or delivery of the product
• External QA – require you suppliers to set up a
system
• Internal QA – company sets up for own use (or
required by their customer)
• Advantages of one over the other??
• Total Quality Assurance is much more than just
product quality
– Touches on all activities within company and with
upstream and downstream partners
– QA aims to ensure customer get the right
product, on time and at the lease cost
– TQA aims at ensuring customers
• Quality return for investors
• QVALITY and ACE for customers
• Quality of life for employees
P275-6
87
Session 13
Philosophy behind QA
• No system can act as a 100% guarantee of
quality
• Quality Assurance based on a cooperative
attitude between customer and supplier
– Supplier must be perceived as a responsible
partner.
– Often gets used inappropriately
Quality Assurance System

• Objective to provide proof that an optimal level
of quality is being obtained
• System must be adequate and effective – not
just an off the shelf solution.
• System must be actually used
• Validity of system checked by audits
– System audits – work procedures, ITP, org chart
– Process audits
– Product audits
– Supplier audits
P277-8
88
44
Session 13
The Role of the QA Department

• Supposed to have both an advisory and
support role
• Three main responsibilities
– Assist in formalizing activities
• Policy development
• Documentation requirements and traceability
– Audits systems in place and evaluates their
effectiveness
– Compiles statistics and produces reports on
all aspects of quality.
• Formal QA system should include:
– P280
• To be a TQA system profitability must
be the underlying objective of the entire
process – drive out waste and deliver
value from the customers perspective.
P280
89
Session 13
The Quality Manual

• Formally sets out the entire quality
system in relation to companies
products and processes.
– Some companies prepare a quality manual
for each major project.
Quality and Purchasing

• External goods and services range
from 30 – 90% of total sales revenue.
• Suppliers have significant impact on
your quality.
• Most businesses involve suppliers in all
four phases of quality cycle
– Creation, Preparation, Realization,
Maintenance
P282
90
45
Session 13
Customer Supplier Relationship

• Collaboration and partnerships
• Early participation
• Reduction of supply base
Purchasing Departments
Responsibility for Quality
• Who is responsible for the quality of
good purchased?
– Division of responsibility not always clear
• Technical Quality
– Potential users have exclusive responsibility
– Purchasing dept generally must influence
• Economic Quality
– Purchasing department has responsibility
– Often technical quality issues have an
economic quality impact
P282
91
Session 13
From Definition of Needs to
Satisfaction
92
46
Session 13
Supplier Evaluation
• Important element in QA
• Must know what to evaluate, who will
do the evaluation, and when it should
be done.
• Some methods of evaluation
– Examination of products
– Reference checks from other customers
– Financial checks
– Trial batches
– Conditional orders
• Major factors that influence quality are:
– The workforce
– The equipment
– The quality management systems
P288
93
Session 13
TQ Assurance and Purchasing Mgt
Supplier Evaluation
• Before submitting an order the buyer
must clearly identify the form of control
required.
– The characteristics that will be evaluated
– How frequently
– Who is responsible for the controlling
– Where control activities take place
– The quantity to be controlled
• Prior agreement on what actions will be
taken if products are refused:
– Returned to supplier at its own expense
– Scrapped
– Temporarily accepted
– Accepted at discount price
– Accepted but modified at the suppliers
expense
P288
94
47
Session 13
Standardization Development
• Why standardize?
• Standardization process can be set in
motion by users, producers, or
standards body.
– Existing standards studied
– Gather good understanding of mfg
procedures and materials
– Consult the applicable laws and regulations
• Committee Method
• Canvass Method
• What are the benefits of

standardization?
P288
95
Session 14
TQ And ISO 9000
Objectives
• To get a good understanding

of ISO Standards
• To learn how to implement a

quality system according to
ISO 9000
• To understand the purpose

and process of registration
and certification
96
48
Session 14
Total Quality & ISO9000
Objectives
• To get a good understanding
of ISO Standards
• To understand the steps in
implementing a quality
system according to
ISO9000
• To understand the purpose
and process of registration
and certification
ISO is =
• World wide non-governmental agency

with 90 member countries
• Objective to promote the development
of worldwide standards
– Common thread in all standards is to
remove unnecessary impediments to
international communication, collaboration
and trade.
• 30,000 technical experts world wide
participate
• 8600 ISO standards
– Result of agreement between member
bodies of ISO
1
ISO9000
• ISO formed a technical committee on

Quality Mgt. and Quality Assurance in
1976
• British introduced first QMS standard for
commercial use followed by Canada’s
Z299 series – these were used worldwide.
• ISO 9000 created in 1987 based on these
standards.
• Since inception over 50 countries national
standards are equivalent or identical to ISO
• Standards reviewed and reaffirmed at least
once every five years
ISO9001-2000
• Replaces existing 1994 standards

– 9001,9002,9003 become obsolete
• Deadline for conversion or
recertification Dec 15/2003
• Standard based on Eight Quality Mgt.
Principles
– Customer Focus
– Leadership
– Involvement of People
– Process Approach
– Systems Approach to Management
– Continual Improvement
– Factual approach to decision making
– Mutually beneficial supplier relationships
2
ISO9001-2000
Process Model for
Quality Management
4. Quality Management System
5. Management Responsibility
6. Resource Management
7. Product Realization
8. Measurement, Analysis, and
Improvement
What is different about

9001-2000?
• Focus on Process
• Focus on Customer Satisfaction
– Customer Satisfaction is a
mandatory concept
• Continual Improvement
– Based on continuous improvement
cycle PlanDoCheckAct
• Greater Flexibility in
documentation – organizations
can tailor program to their
business.
3
• New requirements
– Communicate with customers (7.2.3).
– Identify customer requirements (5.2, 7.2.1).
– Meet customer requirements (5.2).
– Monitor and measure customer satisfaction
(8.2.1).
– Meet regulatory requirements (5.1).
– Meet statutory requirements (5.1).
– Support internal communication (5.5.3).
– Provide quality infrastructure (6.3).
– Provide a quality work environment (6.4).
– Evaluate the effectiveness of training (6.2.2).
– Monitor and measure processes (8.2.3).
– Evaluate the suitability of quality management
system (8.4).
– Evaluate the effectiveness of quality
management system (8.4).
– Identify quality management system
improvements (5.1, 8.4).
– Improve quality management system (5.1, 8.5).
ISO Process
Flowchart
Identify your
customer needs
and improve if
necessary
Say what you

do!
Do what you
say
Prove it
Improve it!
4
ISO Documentation
Level 1
Defines Approaches and
Responsibility
Quality
Manual
Level 2
Defines Who, What,
When
Procedures
Level 3
Answers How
Work/Job Instructions
Level 4
Provides a Record
Other Documentation
Memory Jogger 9000/2000 – Goal QPC
10
5
Evaluation &
Registration
• Evaluation
– Self Audits – internally
– Second Party Evaluations – typically by
customers
– Third Party Evaluations – independent
• Compliance
– Organizations will follow the program to
point of compliance but not seek
registration.
• Registration / Certification
– Certification generally applies to product
– Registration - assessment and approval of
quality system
• Assessment and periodic audit of quality
system by third party
• Accreditation
– Accredits people or organizations for
certifying and registering others.
11
Implementing
ISO9000
• Determine why you want to implement
ISO
– Part of a TQ program
– Customer demand
– Open up new markets
• Seek outside help
– Implementation Consultants
– Government subsidies
• Commitment from Management –
Remember the 10 conditions
12
6
Implementing
ISO9000
Organizing for Registration
• Obtain Mgt. Commitment
• Establish a Steering team
– Plan the project
• Train team members
• Begin internal auditing
– Gap Analysis – lots of third party tools
available
13
Implementing
ISO9000
Preparing for Registration
• Document existing processes
– procedures and job/work instructions
• Identify areas needing improvement
• Adopt improved procedures and work
instructions
• Prepare Quality Manual
• Apply to Registrar for Assessment -
$$$$$
• Pre Assessment
• Modify and finalize practices
• Train staff
14
7
Implementing
ISO9000
Registration Audit
• Registrar conducts assessment and
identifies discrepancies
• Resolve discrepancies
• Submit to registrar corrective actions
• Certification awarded
15
Implementing
ISO9000
Maintain and Improve
• Maintain Quality Practices
– Internal Audits, Measurement etc.
• Regular external Audits
• Continuous Improvement
16
8
ISO 9000 and Total
Quality
• Most ISO registered companies are
not Total Quality companies
• ISO is a good first step towards TQ
• ISO9000-2000 comes much closer a
TQ philosophy than previous versions.
• Many companies will be really
challenged living up to the spirit of ISO
9000-2000 when they convert from
earlier versions
• Not all ISO Experts embrace a TQ
philosophy
17
ISO Resources
www.qcbinc.com
ISO Courses, Registration
Services
www.qmi.com
ISO courses, Registration
Services, Handbooks and
Standards– Division of CSA
http://praxiom.com/
Free information, ISO tools &
Books
18

Principles of Quality Instructor: Peter Churchill

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Session 1 Objectives

• To understand why organizations feel the

• To determine the causes and

• To identify the conditions of success and

Session 1 – The Total Quality Approach

• The concept of quality extends beyond

• 80% failure rate.

Session 1 – The Importance of Quality

• What is driving quality initiatives

• Poor quality costs estimated at 5% - 20%

• Chain reaction effect.

• Examples of Unquality and overquality?

• What is the difference between total

• Experts cannot agree.

• Many define based on product quality

• Different definition depending on function

• Ultimately the customers view of quality

• Suitability for intended use

• Student examples of Intrinsic & Extrinsic

• ACE – Above Customer Expectations

• Offering goods or services that the

• Mass production to mass customization

• Do not confuse ACE with Overquality

• Discuss the impact on total quality if

• To differentiate between quality control,

• To introduce introversive and

• To provide an understanding of the TQM

• TQM foundation of Japans economic

• TQM is based on a management

Session 4 – Implementing TQM

• To Learn a step-by-step process to

• To learn how to evaluate the TQM

• To learn how to take corrective actions

2. Concrete, measurable long term vision of TQ

3. CEO has personal responsibility for TQ – visibly

4. CEO & Top Mgt. must share conviction that

5. All people in company, shareholders, and

Session 4 – Implementing TQM

6. People must receive appropriate training

7. People must receive reinforcement

8. Open and frank communication on the part of

9. Upstream and downstream partners must be

10. Customers and stockholders must be educated

Prerequisites to TQM Implementation

1. Sensitizing and Familiarizing top management

Session 4 – Implementing TQM

Session 5 CI & Re-engineering

• Defining Re-engineering (Innovation)

• Defining the different levels of re-

• Re-engineering is not necessarily TQ

Session 5 CI & Re-engineering

• Work Process Re-engineering

Session 5 CI & Re-engineering

• Mainstream process consists of:

Session 5 CI & Re-engineering

During each phase of every stage the following

Session 5 CI & Re-engineering

• Customer Satisfaction also includes:

Session 5 CI & Re-engineering

• To familiarize participants with

• To show where these techniques can

• To learn how to apply some problem-