JURAN QUALITY CONSULTANCY

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Welcome
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BUSINESS EXCELLENCE THROUGH QUALITY IMPROVEMENT
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What is Quality?

• Fit for use
• The totality of the characteristic of an entity
  that bears its ability to meet stated and implied
  needs.

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What is Quality?

• Degree to which a set of inherent characteristics
  fulfils requirements
• ISO 9000 2000 definition

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Who decides Quality?

Product B
Product A
50/_1mm
50/_0.1mm
Made by RMT 50.9mm
Made by RMT 50.2mm
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What is Quality

• Quality Customer Satisfaction .
• Formula 1

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Production Vs Quality

• Revenue Quantity (Production) X Price

Getting more orders
Getting more customers
QUALITY
Customer satisfaction
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What is Quality

• Quality Customer requirement
• Customer requirement Customer need Customer
  expectationFormula 2

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High cost of losing a customer

• The average dissatisfied customer will tell 8 to
  16 people not to purchase from you.
• 91 of unhappy customers will never purchase
  goods / services from you again.
• It costs 5 times as much to attract a new
  customer as it costs to keep an old one.
• The average satisfied customer tells 57 people.

Survey conducted by office of consumer affairs on
March 31, 2002.
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Quality is profitable.

• By and large, the utlimate test of a Quality
  process (ISO 9000, TQM, Six sigma) is bottom
  line. There is no shortcuts, it takes hard work,
  a lot of skill to see bottomline benefits.

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Quality is profitable.

• Case study
• Yokogawa Hewlett Packard increased their
  profitability by 244 percent in five years.
• Motorola saved 700 million as a result of
  Quality process.

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Poor Quality is penalised

• Example If a cost of retaining one customer is
  Rs.100 by delivering good quality.
• One dissatisfied customer tells 10 customers not
  to purchase from you.
• Replacing the customer with a new one usually 5
  times as much. (Loss of 10X5X1005000).
• A total loss of Rs.5000 profit from 10
  customers if you loss a customer.

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Quality distinguishes

• In a crowed and competitive market, that which
  does not stand out is simply ignored.
• Todays exceptional service is tommorrow,s norms.
• Distinction is a continuous need.

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Quality is expected

• Customer expects Quality.
• Your competitor is doing it.
• The Quality shock waves are sent reverberating
  the supply chains, crossing borders and sectors.

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Approach to managing Quality

• Inspection (1800)
• Quality control (1930)
• Quality Assurance (1950)
• Quality management system (1980)
• Total Quality management

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Disadvantage of Inspection

• It is costly
• Unreliable
• Too late
• Applies only to product and not to specification
• create perception that inspector is responsible
  for quality

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What is INSPECTION?

• Within the industry at large there was a need for
  quality standards to work to. early attempts to
  meet this need in Britain resulted in
  standaaards, as BS 5179 but these were in the
  nature of codes forth in 1979 was the first
  edition of BS 5750. This standaard was very fimly
  based on AQAP-1.

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Quality control

• Data collected from measurement of a feature is
  fed back to the producer, enabling the
  performance of the process to be monitored and
  adjusted.

PROCESS
Measurement
Controlling action
Feed back
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Quality Assurance

• Part of quality management focused on providing
  confidence that quality requirements will be
  fulfiled
• Prevention is better than detection.

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Quality management

• Does not focus just on control and providing
  assurance
• Management of everything that affects quality
• Enhancing customer satisfaction by continual
  improvement of efficiency and effectiveness.

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Some implementation tips

• Appointing a good consultant.
• Having experience in similar industry.
• Well experienced.
• Do not select consultant by price alone.
• Avoid fresh graduates with less experience.

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Some Implementation tips

• Commitment from management for effective
  implementation.
• Document your way of doing business
• Keep the documentation simple
• Document the fluxibility you need in your
  procedure.
• Dont conduct implementation of ISO-9000 just to
  get certificate.

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Some Implementation tips

• Avoid over documentation. the more you say, the
  more you commit to.
• Dont sacrifice the operational flexibility you
  need for your business.
• Dont document artificial or hypothetical ways of
  doing business to please ISO auditor.

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Some implementation tips

• Justify the implementation cost intelligently.
  (Ex calibration, flooring, building)
• Drive out fear of Non-conformance.
• Avoid duplication work.
• Focus your effort on continual improvement of
  processes and customer satisfaction. Do not focus
  on paper work.

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Some implementation tips

• Generate more data, more analysis.
• More emphasize on corrective action and
  preventive action.
• Train internal Quality auditors effectively.
• Get the help of the consultant minimum one year.
• ISO 9000 certification is not the achievement or
  end, it is the beginning.

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Present Business scenario

• More domestic competition
• Entrance of multinationals
• WTO
• Price reduction by OEM
• Increase in labour cost
• Increase in raw material (Steel)

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THANK YOU