Speaker 1: Hello everyone, this is George from Invencys Learning, welcome to our YouTube channel. When someone says quality, they're usually referring to good. But, unfortunately, many firms advertise their products as high-quality or superior quality in this way, without truly defining what quality actually means, and we're more likely to see it in marketing materials than in critical business processes or policy documents. Companies today mainly prioritize improving the quality of their system. Thus, quality is one of the most used terms in many enterprises, and understanding the term quality management properly is very essential. Saying this, why not we talk about quality management today and explore its basic terms. Now let us go through the agenda first, we shall discuss what is quality management? Then, we shall take a look into the history of quality management. Then we will learn why quality management? Soon after that, we shall understand quality management systems. Then, we shall look into quality management process, followed by quality management principles. Next, we shall see quality management tools, and end the session by discussing quality management examples. So, let us start our session today without any delay. Let us begin our session by discussing the main topic of today, that is, what is quality management? Quality in general refers to the sum of a product's traits and characteristics that influence its ability to meet certain needs. To achieve a goal, management entails managing and regulating a group of people or an organization. As a result, quality management entails aligning an organization's traits and characteristics. The act of managing all activities and tasks that must be completed in order to maintain a particular degree of perfection is known as quality management. It is concerned with both the quality of products and services as well as the methods used to attain it. Quality management is concerned with the products and services and the inputs like the tasks and processes that produce the results. Everything we do to ensure that our company's products and services are produced and delivered on time and budget falls under the category of quality management. Making sure things arrive on schedule is also part of quality management. In an ideal world, the quality of a product and service not only improves, but the process by which it is made improves as well, resulting in more consistent, higher quality products and services. It ensures that the goods or services provided by a corporation are consistent. Now that you guys are aware of the term quality management, let us go deep into it by knowing. History of Quality Management Quality management has roots that can be traced all the way back to the Middle Ages. Some research says that traits of quality management were found in the 1920s. It was the first time statistical theory had been used to control product quality. To verify that each element followed specified standards and rules, they began measuring, evaluating, and testing the products, processes, and services against precise specifications. Soon after this, in the year 1940, change and development were brought up by many industry professionals and experts. This is where total quality management as we know it today began. With this, total quality management was also discovered in Japan during the 1940s. Japanese products were seen as low-quality knockoffs at the time. Japan enlisted the help of quality management gurus such as Deming and Duran after hearing about the success of quality management in the West. However, Western culture would eventually catch up. By the 1980s, Western culture had taken notice of Japan's achievements and began to establish and adhere to tougher total quality management requirements. However, it was unclear at the time exactly what TQM entailed. Companies worldwide now compete for the hundreds of excellence awards that are currently given out. However, the goal of quality management has remained the same throughout history, to ensure that customers obtain an excellent, high-quality product. Now that you are familiar with the history of quality, let us discuss. Why is quality management required? Enterprises around the world are prioritizing themselves to provide quality goods. Today's customers have a huge number of options in front of them that only if the organization has quality goods, then customers are choosing them. Hence, quality through continuous improvements is such a vital role for many organizations. Now, let us point to the checklist of why quality management is important. The reasons are, creates customer satisfaction, product consistency in terms of quality and design, ensures long-lasting efficiency, reduces risks, increases profits, and maintains the competitive advantage. Let us now discuss each of these in detail. Firstly, we have, creates customer satisfaction. Customers are more demanding than ever before in today's competitive economy. Because of technological advancements, they may choose from thousands of brands and access millions of stores. It's vital to match or surpass their expectations if you want your company to stand apart. It is no longer sufficient to ensure that your items are fine. Customers' needs must be met, and the highest quality standards must be met. Quality management can assist you in converting prospects into long-term consumers. It accomplishes this by constantly refining your products, absorbing modifications, and removing flaws. It also gives businesses the information they need to create products and services that people demand. This will help you gain market share and provide your company a competitive advantage in the long run. Next, product consistency in terms of quality and design. Firms must plan, create, execute, and manufacture product offerings for the target market while understanding the importance of quality management and adhering to the parameters of overall quality management in all aspects. It aids in the consistent and continual maintenance of quality realms. Furthermore, the company is able to perform market research and studies on a regular basis to provide items that are a testament to the company's quality and beliefs. Then, ensures long-lasting efficacy which increases profits. When we examine the importance of quality management, we must consider the working efficiency of the employees involved in product manufacture and the working efficiency of each employee of the company and the types of machinery. Understanding the complete process gives them more confidence and agility, which increases their efficiency by a factor of 10. And it all has a knock-on effect on the company's total sales and profitability. Next one is reduced risks. Another factor that aids the company in enhancing and maintaining its brand value in the market is the lessened risk, and hazards only arise in commercial operations when the company fails to comply with quality standards. Most risks occur during the product manufacturing process and when dealing with customers during the pre- and post-sale operations. As a result, understanding the importance of quality management, particularly in these two elements of the business, is critical for businesses. We have. Increases profits as next criteria. In today's dynamic market, where competition is fierce, generating the needed revenues and profits while satisfying long- and short-term objectives is extremely tough. And adhering to the importance of quality management is a surefire approach to achieving all of your company's goals and objectives. It ensures great customer satisfaction, brand value, increased market share, loyal customers, and competitive advantage. But, on the other hand, firms frequently fail to grasp this basic and vital principle, resulting in losses. Lastly, maintain your competitive advantage. To keep up with their larger competitors, small firms must do everything they can. The importance of providing outstanding products and services cannot be overstated. Quality management systems provide information and recommendations for doing things correctly. They also assist your company in achieving maximum cost efficiency and resource usage. These methods boost your company's brand in the long run, putting you on par with your competition. In addition, they lead to a higher market position because they improve your products and business processes. Now let us understand what. Quality management systems. A structured system that documents processes, methods and responsibilities for accomplishing quality policies and objectives is referred to as a quality management system, QMS. A quality management system, QMS, aids in the coordination and direction of an organization's activities in order to meet customer and regulatory requirements while also continuously improving its effectiveness and efficiency. It is a set of rules, processes, and procedures that are necessary for planning and execution in the core business of a corporation. It gives you the information, tools, and resources you need to properly comprehend what quality management systems are and how they can help you enhance your company's day-to-day operations. A quality management system, such as ISO 9001, is an example. After understanding quality management system, now, let us take a tour into. Quality management process. A quality management process is a series of procedures used to verify that a team's deliverables are fit for purpose. It is an important procedure in every business since it ensures that the deliverables provided truly fulfill the consumer's needs. This quality management process will assist you in immediately improving the quality of your deliveries. According to PMBOK, the three basic phases of project quality management are quality planning, quality assurance, and quality control. These three phases have respective inputs, tools and techniques, and outputs. Let us now discuss each of them in detail. To begin with, quality planning is the first phase. HRE, planning of the quality process is explained. The inputs included are enterprise environmental factors, which relate to conditions that influence, constrain, or steer the project, program, or portfolio that are not under the immediate control of the team. Then organizational process assets as our next input. PMBOK defines this as the plans, processes, policies, procedures, and knowledge bases specific to and used by the performing organization. Next, the project scope statement comprises a full explanation of the work that must be completed to provide a project's output on time and within the budget. In the end, we have project management plan as our last output, which means the planning process involved in the management. The tools and techniques include cost benefit analysis, benchmarking, cost to quality, and many other additional tools. Some of these are discussed in the later chapter of the video. Next, coming to the outputs, we have a quality management plan as our first output. It is a well-defined set of documentation and information for managing software quality throughout the development process. Then we have quality metrics and quality checklists, followed by a quality management plan and quality baseline. The next phase is performing quality assurance. The inputs here are a quality management plan, quality metrics, and process improvements similar to the previous phase. Then we have work performance information. It indicates what proportion of the work has been accomplished, how much time has passed, the cost incurred, and more, as well as the project's current state. Then we have approved change requests, which is a type of change request that has been processed through integrated change processes. Next, we have quality controlled measurements followed by implemented change requests, implemented corrective actions, implemented defect pair, implemented preventive actions. Coming to tools and techniques, we have quality planning tools and techniques for quality management planning. Then we have quality audits, which is the process of an internal or external quality auditor or an audit team conducting a systematic examination of a quality system. Then we have process analysis, which is used to analyze the specified process. Lastly, we have quality control tools and techniques. Coming to the outputs, we have requested changes which are the suggested changes required. Then we have recommended corrective actions, followed by organizational process assets and updated project management plans. Then we have to perform quality control as our last phase. To begin with, inputs include quality management plan, followed by quality metrics and quality checklists. Then, we have organizational process assets and work performance initiation, as we have discussed in the other two phases. In the end, we have approved change requests and deliverables as the inputs. Coming to tools and techniques, we have cause and effect analysis, control charts, flow charting, histogram, Pareto chart, run chart, scalar diagram, statistical sampling, inspection, and defect repair review. Coming to outputs, quality control measurements, validated defect repair, updated quality baseline, and recommended corrective and preventive actions. Then, we have required changes, recommended defect repair, organization process assets, validated deliverables, and updated project management plan. Now you guys are aware of quality management process, let us now look into quality management principles. Since its founding in 1947, the International Standard for Organizations, ISO, has established guiding principles to prevent enterprises from fatal errors. The Quality Management System, QMS, standards concept, which was introduced in 1994, is known by the acronym ISO 9001. The most recent version, which went into effect in 2015, was created to respond to new regulatory requirements and improve upon the prior model. The ISO 9001 principles were developed by a small group of professionals in the 1990s, based on philosophical teachings and business knowledge from the preceding century. Let's take a closer look at each of them. The first principle is, Customer Focus. The first, and maybe most important, principle says that a business would not exist without customers. As a result, businesses should make an effort to learn more about their current and potential customers in order to meet their requirements and expectations better. The primary goal of quality management is to satisfy client needs and exceed their expectations. Customers who are now and will be in the future should be given top priority. Companies should evaluate customer satisfaction on a frequent basis, in addition to fulfilling or exceeding customer expectations. On the other hand, failure to exceed customer expectations should be closely monitored. Every department and function should be a part of the process. Next W have, Leadership. Leadership must begin at the top, as with any good initiative. An organization will suffer if it lacks good leadership. First, its leaders should establish the company's vision and goals. Leaders are in charge of fostering a productive and forward-thinking business environment. They're also in charge of ensuring that future recruits have the same vibe. This idea can be implemented in your workplace if you have a clear vision for the company and the correct executives in place to communicate that goal to the rest of the team. N Engagement of people. You want to have a workforce that is engaged. This implies that the staff's abilities are utilized and respected. It also allows for continual improvement, learning, and discussion of any problems that may arise. In addition, staff are held accountable for their activities when they are part of an engaged workforce. Finally, the role needs everyone in the organization to be active and interested in their work, rather than being viewed as a passive place to clock in every morning. Organizations flourish due to this through retaining competent people, supporting ongoing refinement of their knowledge and abilities, empowering them, encouraging engagement, and recognizing accomplishments. The next one is. Process Approach. A process approach, like so many other aspects of quality, lays out the stages to success. This entails managing activities as processes, measuring them, and identifying links between them. Possibilities for improvement are kept track of. Quality isn't something that happens. To ensure the organization's success, processes must be in place behind the scenes. It aids businesses in avoiding logistical issues that are frequently caused by a lack of understanding of the proper procedure. It also helps to future-proof your company because having procedures in place ensures no panic when a key team member leaves, leaving everyone in the dark regarding crucial aspects of their job. Coming to the next principle, we have. Improvement. A good quality system necessitates adjustment. The competition will eventually outshine companies if they do not develop. Maintaining this status quo does not motivate anyone. A company should always look for ways to improve because if it isn't, you can be sure that your competitors will. To sustain present performance levels, respond to changes in internal and external conditions, and generate new opportunities, an organization must improve. Next. Evidence-Based Decision Making. Decision making is a difficult process that is always fraught with ambiguity. It frequently incorporates various types and sources of inputs and a subjective interpretation of those inputs. Decisions based on data and information analysis and review are more likely to generate the intended outcomes. Effective decisions are made based on reasonable data analysis, according to this principle. While having a gut intuition can be valuable in some instances, it won't help you explain why your earnings are down 10% this year to your board of investors. Lastly. Product Management. Suppliers and partners who carefully manage their connections can foster good and productive involvement, support, and feedback from those entities. An organization's connections with interested parties, such as suppliers, must be managed for long-term success. Now, let us get an understanding of. Quality Management Tools. To improve the quality of products and services, quality management tools are essential. Quality management tools help firms collect and analyze data so that employees may better comprehend and interpret data. It assists staff in identifying common problems that frequently arise as well as their core causes. Additionally, technologies make data easier to interpret and help staff discover procedures to correct errors and solve specific problems. Now let us point out some of them and discuss them. The first tool is. Six Sigma. Six Sigma is a method of providing enterprises with a set of tools to assist them improve their company's success. It is a disciplined, data-driven approach and methodology that usually aims to eliminate defects in any process ranging from manufacturing to transactional and product to service. In general, it means a measure of quality that strives for near perfection. Next, we have. Pareto Chart. The Pareto Chart is an analysis tool. It is extremely helpful while making decisions based on priorities. It is based on the principle that 80% of problems can be solved by eliminating 20% of the causes they stem from. This means that with a few corrective actions, a large number of deficiencies can be resolved easily. This chart is similar to that of a bar chart that is commonly used to identify the key factor or factors in a problem, to determine the main cause of a problem, to build a method to improve the elements, and to ascertain whether the desired effect has been achieved or not. Then. Cause Benefit Analysis. The Fishbone Diagram is a cause and effect diagram that usually helps managers to track down the reasons for imperfections, variations, defects, or failures. Thus, it is also called the Ishikawa Diagram and Fishbone Diagram. The diagram looks just like a fish's skeleton, hence the name. Here, we write the problem at its head and its causes feeding into the spine. Once all the causes have been identified, managers can start looking for solutions to ensure that the problem is not recurring. The next tool is. Kaizen. Kaizen is a Japanese term that means continuous improvement. This method mainly focuses on making not-so-huge, but small continuous improvements in order to have a large-scale impact. In this, employee-manager relationships are cherished, and employees are highly encouraged to share their feedback and suggestions. Usually, Kaizen is a technique used to constantly improve every function of the business, like the management, construction, or development departments. Next. Flowchart. The process flowchart is nothing but a process visualization through a flowchart. One can create a simple process flowchart by using a pen and paper or using digital platforms. One should just include the basic shapes and represent the different staging of the process. Then. Histogram. A histogram aids quality analysts and management professionals in precisely analyzing the many types of data they have on various data groups to establish controls to improve the quality of any process. The frequency of the data is estimated when a sample is taken and divided into different groups. This aids in the discovery of process improvement opportunities. The low-performing areas appear on the histogram with less frequency, allowing quality management professionals to identify and solve the problem's core cause. The last tool is. Total quality management. Total quality management is a business improvement methodology that is best suited for a constantly changing environment. TQM is a set of processes, training methods, and instruments that aid in the adaptation to changing consumer expectations. Many companies are consciously trying to address the changes using TQM, having mechanisms in place to quickly and efficiently respond to these customers' needs. Now, let us go through the last topic of today's session, that is, quality management examples. The first example is. The Coca-Cola company is a famous juice manufacturer. They once wanted to improve safe food management by advancing the company's quality culture. So the company created a Six Sigma team. The team started applying the DMAIC, FMEA, CIPOC, process mapping, and many other advanced quality management methodologies. Soon after this, they started using quality management tools like brainstorming and cost effect analysis. After implementing all these Six Sigma strategies, the customer complaints reduced gradually by 75%. In addition, the quality index improved from 91% to 92%, and also, the equipment renewal increased by 3%. The second example is. Boeing is the world's largest aircraft maker. To increase efficiency, the company decided to introduce a lean management system. Manufacturing saw significant success as a result of this shift in the process. They established a lean manufacturing approach, which allowed Boeing to better control its inventory supply than before. Boeing didn't stop there. In the late 1990s, they incorporated Six Sigma into their lean production process. Boeing's resource productivity increased from 30% to 70% as a result of this change. Lean manufacturing combined with the Six Sigma approach helps cut costs while also improving customer response times. The third and last example is. Nokia, a well-known business, intended to cut down on the expenditures of manual scrutiny in the mapmaking process. So they formed a Six Sigma team, which employed the DMAV methodology, measurement system analysis, quality function deployment dough, Pareto chart, affinity diagram, multi-voting, and a variety of other Six Sigma techniques. By establishing a qualification and inspection process across the firm after defining all of these improvement concepts, a potential cost of 2.5 million euros was saved. Businesses need quality management to assure consistency in their operations, as well as their products and services. In addition, customer satisfaction is crucial in business. Because the quality of the items or services a client purchases is their first concern. The supplier's primary priority should always be to ensure consistent and high quality what they create. Thus, quality management is a crucial key to modern businesses. You can also try to be one of them. We can help you. We, at Invencys Learning, will provide you with many quality management courses. You can take a look at it, and choose one of your interests. For more details, Read the description below. Thanks.