WELCOME TO

OUR PRESENTATION CONCERN

QUALITY MANAGEMENT:
MANAGEMENT FOR
CONTINUOUS
IMPROVEMENT
1
 Objectives

● To Understand the Concept of Quality

● To Convey a Better Understanding of Quality
Management in the Essence of TQM
● To Enhance the Knowledge About Quality Cost
● To Develop a More Practical Knowledge Through
Choosing a Business Concern Which Has Developed
Quality Control System.

2
 Contents

● Concept of Quality
● Cost of Quality
● Total Quality Management (TQM)
● Case Study on Incepta Pharma. Ltd.

3
Conceptual Differences Towards Meaning of Quality

● From the view point of Business Executives:

----Fulfillment of primary operating characteristics
----Quality is an absolute measure

● From the view point of Students :

-----Design and operating criterias
----- Set of standard as product quality
-----Looking, feeling, tasting and smelling of products

4
 What is Quality? (1 of 3)

“The Voice of the Customer”

“The quality of a product or service is a

customer’s perception of the degree to which
the product or service meets his or her
expectations.”

 Best-in-class quality
 world-class company

5
QUALITY AS KEY SUCCESS FACTOR IN CONTEMPORARY
CONDITIONS OF OPERATIONS (2 of 3 )
Year Emphasis Tactics

Until Protected No motives to operate more

1970s Competitive efficiently and cut down their
conditions. expenses, for it was usually possible
cost increase to be switched to
customers.
During Globalization
'70s,   Costs efficiency,
quality, time and
innovations
 
Until Quality Inspection, rework, and
the end Improvement scrap and warranty&
of '80s program repairs cost.
From The concept (TQM). The principle of
1980s, continuous
improvements with 6
Participation of all
Eight Dimensions of Product Quality (3 of 3)

● Performance – relative to customer’s intended use

● Features – special characteristics
● Reliability – likelihood of breakdowns, malfunctions
● Conformance: Degree to which design and
characteristics meet specific standards
● Durability – amount of time/use before repairs
● Serviceability – speed/cost/convenience of servicing
● Aesthetics: Look, taste, feel, sound, smell of a
good/services
● Perceived quality: Quality conveyed via marketing,
brand name, reputation
7
 Costs of Quality (1of 3)

● Prevention cost - training, charting

performance, product/process redesign,
supplier development, ….
● Appraisal cost - inspection, testing, ….
● Internal Failure cost - rescheduling,
repairing, retesting
● External Failure Cost - recalls, warranty
claims, law suits, lost business, …
8
 Costs of Quality (2 of 3)

● Impact of quality cost

● Risk of quality cost
● The dark side of quality cost analysis

9
Traditional View of Quality Management (3of 3)

Annual Cost ($)

Optimal
Level of
Inspection
Total Quality
Control Costs
Cost of Scrap,
Rework, and
Detecting Defects

Cost of Defective
Products to
Customers
0 % of Products Inspected
10
 Modern Quality Management (1 of 5)

● Quality Gurus
● Quality Drives the Productivity Machine
● Other Aspects of the Quality Picture

11
 Quality Gurus (2of 5)

● W. Edwards Deming
●
Plan-Do-Check-Act (PDCA) cycle
●
Developed 14 Points for managers
● Armand V. Feigenbaum
●
Total quality control (TQC)
●
Quality at the source
● Kaoru Ishikawa
●
quality circles
●
Suggested the use of fishbone diagrams
12
 Quality Gurus (3 of 5)

● Philip B. Crosby
●
Zero defects
●
Traditional trade-off between costs of improving
quality and costs of poor quality is erroneous
● Joseph M. Juran
●
Modern quality management implementation in
US companies
● Genichi Taguchi
●
Quality Loss Function

13
Quality Drives the Productivity Machine (4 of 5)

● Defect-free Production
● 20-25% of COGS will be spent on
finding and correcting errors

14
Other Aspects of the Quality Picture (5 of 5)

● Just-in-time (JIT) and lean manufacturing

● Product standardization
● Automated equipment
● Preventive maintenance

15
 Total Quality Management (TQM)
Managerial Wave (1 0f 3)

Total quality management is not a program; it is a

systematic, integrated, and organizational way-of-life
directed at the continuous improvement of organization.

TQM Programs
● Motorola - Six Sigma

● Xerox - Leadership through Quality

● Intel - (PDQ)2 or Perfect Design Quality, Pretty

Darn Quick
● Hewlett-Packard - Total Quality Control

16
 TQM Tools and Techniques: (2 of 3)

● Benchmarking
● Outsourcing
● Speed
● ISO 9000
● Statistical quality control
● Six sigma
● Quality function development(QFD)

17
 Quality Management in Services (3 of 3)

● Intangible Services
● Setting standards by customers
● Surroundings affect Perceived quality
● Performance of service employees

18
 Case Study

Incepta Pharmaceuticals Ltd

19
 Quality Management of Incepta

“ The totality of features and characteristics of a product that

bear on its ability to satisfy stated or implied needs.”
Guidelines:
● WHO

● USFDA

● Drug Administration and Manufacturing Policy of

Bangladesh
Parameter
● British Pharmacopoeia

● American Pharmacopoeia

20
 Quality Management of Incepta

Quality Management Teams

● SOP execute team
● Quality Circles
● ESC
● Employee Supervision Team
Quality Management Solution
● Software system
● CGMP Guidelines

21
 Quality Management of Incepta

TQM -Introduced in 2003

TQM Techniques
● Outsourcing

● Benchmarking

● ISO 9000

● Statistical Quality Control

22
 Quality Management of Incepta

Customer Relationship Management(CRM)

Major Areas
● Customer Satisfaction

● Faster Service

Techniques of CRM
● Developing Medical Service Dept.

● Arranging Scientific Seminar

● Holding Different Programs with Customer.

Third Party Involvement- 4Ps

23
 Quality Cost report in graphic form
Quality Costs (in cores)

2.5 0.12 0.12

0.72
2 0.96
Internal Failure Cost
1.5 Apprisal Cost
Prevention Cost
1 1.68
1.44
0.5

0
Year-2005 Year-2004

24
 Success of TQM

● 5% increase in profit over sales

● Optimize total quality cost
● 0% external failure cost

25