Quality economics standards
Quality economics mut address Productivity,Quality, Cost, Delivery, Safety that are acceptable to Stakeholders. Morale is high to encourage principle of "Right to work" and engage in productive employment.
Though economics is a 'big' word, Quality actually means providing products and services exhibiting principles of "Product Responsibility"at the least cost addressing every reuqirements of stakeholder. In the economic sense, there is a sustainable demand and supply only when cost is affordable to all stake holders. Customer is the major stake holder, but not the only stakeholder.
Fundamental to accomplishing Quality Economics is a Quality Management System that is built based on healthy Standards, Guidelines, Best Practice using
| Management System Element | Quality Management Principle |
| Strategic Planning Methods |
Principle 1 – Customer focus Principle 2 – Leadership |
| Risk Management System |
Principle 7 – Factual approach to decision making |
| Policy Management System | Principle 2 – Leadership |
| Resource Management System |
Principle 3 – Engagement of people Principle 4 – Process approach |
| Information Management System |
Principle 4 – Process approach |
| Tools & Techniques appropriate for realization of Products & Services |
Principle 4 – Process approach Principle 5 – Improvement |
| Management information system | Principle 6 – Evidence based decision making |
| Management Review System |
Principle 2 – Leadership Principle 6 – Evidence based decision making Principle 5 – Improvement |
| Stake holder engagement systems |
Principle 3 – Engagement of people Principle 6 – Evidence based decision making |
| Stake holder disclosure systems |
Principle 1 – Customer focus Principle 2 – Leadership Principle 6 – Evidence based decision making |
The Juran trilogy
Quality economics is best illustrated by Juran, who was one of the first to write about the cost of poor quality.
This was illustrated by his "Juran trilogy", an approach that gives rise to cross-functional management, which is composed of three managerial processes:
Quality planning
Quality control
Quality improvement
Edward Deming
Dr. Edward Deming, the Quality Guru once said
"It is not necessary to change. Survival is not mandatory"
Though sarcastic, every alphabet in this oozes truth
He authored a continual improvement philosophy that you will begin to see in every enterprise
Deming calls this philosophy as PDCA (Plan, Do, Check, Act) Cycle
Quality Management System
Sevelar appraoches are possible to Manage Quality and resultant cost of quality. The best amongst every approach is Deming's Fourteen Points for Total Quality Management
- Create constancy of purpose for improvement of product and services
- Adopt the new philosophy
- Cease dependence on mass inspection
- End the practice of awarding business on price tag alone
- Constantly and forever improve the systems of production and services
- Institute modern methods of training on the job
- Institute modern methods of supervision and leadership
- Drive out fear
- Break down barriers between departments
- Eliminate numerical goals for the work force
- Eliminate work standards and numerical quotas
- Remove barriers to pride of workmanship
- Institute a vigorous programme of education and training for everyone
- Create a structure in top management that will push every day on the above 13 points
As the system becomes more complex, there is a need to rely on Standrads for Quality Management. ISO provides several standards generic as well as sector specific guidelines for standardizing Quality Management.
The best Quality Management System will integrate Juran trilogy with ISO and create a Total Employee Involvement by empowering employees with Tools & Techniques. Improvement systems will have been institutionalised with formal structures for Daily Work management, Employee suggestions, Small Group Activities, Kaizens and Cross Functional Team efforts
Tools & Techniques for Quality Economics
There can not be one single comprehensive list of tools & techniques needed to improve Quality cost and quality economics. But an attempt has been made here to provide a guide in selecting Tools & Techniques appropriate for the needs in Quality Planning , Quality Control during operation and Quality Improvement to improve economics
| Plan | Do | Check | Act |
| Quality planning | Quality Control | Quality Improvement | |
| Tools & Techniques | |||
| Policy planning | X-Matrix QFD Context analysis |
Balance Score card Risk control |
Governance Management Review |
| Management System Planning | ISO Standards, GMP. GLP, TQM, TPM, 100 PPM Daily Work Management Planning Process Mapping Competence Mapping Turtle Diagrams Quality Operating System (QOS) Business Operating System (BOS) |
Internal Audit On Job Training Root Cause Analysis |
Total Employee Invlovement (TEI) Suggestion Schemes Kaizens Small Group Activities Cross Functional Team efforts |
| People Planning | Competency Planning Competency mapping |
skill gap analysis Competency assessment |
Competency Building (Training & other actions) Performance Management |
| Product Planning | DFMEA Proto Type Planning Design Verification Plan Design Validation Plan |
Control Plan DOE |
Reliability Improvement Value Engineering Mistake Proofing |
| Process Planning | PFMEA Pilot Lot Plan Measurement system plan Process verification Plan Process Validation Plan (Capability studies) Lot sampling plan |
Control Plan Process Performance studies Measurement system analysis |
Lean DOE Mistake Proofing Technology adaptation ERP integration |
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E-Qual receives appreciation from Mahindra & Mahindra
for knowledge support in implementing Energy Management System to ISO 50001: 2018
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"We are extremely delighted to have your consultancy for the successful completion of the process
Thank You for all your support and guidance"
Regards,
MRV Infra Management
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We are extremely appreciative of the efforts of Management Consultants E-Qual.
As implementing partner of Assist, they developed skills, 20 QEHS Champions (Quality, Environmental, Health and Safety ) in our supply chain and bringingout an excellent QEHS implementation handbook for continued guidance in their day to day implimentation
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