Steps/ Process of the Control System
Determine the area of control
Set Control Standards
Measure actual performance Feedback
Compare actual performance with standards
Determine the reasons of deviation
Take corrective action
Types of Control Systems
• On the Basis of Focus
- Input Control (Knowledge, Skills, Values, Materials)
- Behavioral Control (Policies, Rules, Procedures)
- Output Control (Targets, End results)
• On the Basis of Timing
- Feed forward/Pre/Input Control (Anticipate problems)
- Concurrent/ Process/ Throughput Control (As problems Occur)
- Feedback/ Post/ Output Control (After problems Occur)
Nature/ Characteristics of Effective Control System
• A management Function
• Continuous Process
• Plans/Guidelines Oriented
• Corrective Action
• An end Function
• Dynamic and Pervasive Function
• Focus on Key Performance
• Forward Looking Activity
Barriers to Successful Controlling
• Over-Control (No Facebook, Dress Code, Private Mail)
• Inappropriate Focus
• Rewards for Inefficiency
(Budget Finish- Punish, Budget Save- Reward)
• Too much Accountability (Responsible)
• Moral Pressure (Continuous monitoring could be demotivating)
Definition of Quality
• By ISO 9000
-Quality is the degree to which a commodity
meets the requirements of the customer at the
start of its life.
• Simply put, Quality is the ability of products and
services to satisfy the users.
• Quality Control ensures that required quality in
the products/services are met through the
elimination of sub-standard quality.
Dimensions of Quality
Dimensions Dimensions Example
1. Performance How well the product performs in comparison to how it was Sound of Sony TV
designed to perform
2. Features What different functions or tasks can the product perform Complementary breakfast of HMC
Hotel
3. Reliability Likelihood that the product will perform throughout its 1 year maintenance cost of Pulsar
expected life
4. Conformances Does the product meet quality specifications as designed Car safety standards. The seat has
to be to certain height.
5. Durability The actual life expectancy of the product Denim Jeans
6. Serviceability What is the ease of fixing or repairing the product if it fails Hyundai service parts are easy to
find
7. Aesthetics The style, materials and visual appeal of a product LK9 Coffee Shop
8. Perceived Quality Based on customer’s experience before, during and after they JBL Speakers
purchase a product
Factors Affecting Quality
• Cost (Cost must be minimized)
• Materials (Good quality material must be used)
• Policy/Management Support (Quality must be supported)
• People (Skilled manpower)
• Nature of Market (Competition high, Quality high)
• Machines/Methods of production
• Research & Development Budget
• Information Availability
Total Quality Management
• Total quality management (TQM) is the continual process of detecting and reducing or eliminating
errors in manufacturing and supply chain so that the customer experience can be improved, and
ensuring that employees are up to speed with training.
• The focus is to improve the quality of an organization's outputs, including goods and services,
through the continual improvement of internal practices.
• Total quality management aims to hold all parties involved in the production process accountable for
the overall quality of the final product or service.
• Originated in Japan
Value Added Analysis
Benchmarking
Outsourcing
Speed: Reducing Cycle Time Tools of Total Quality Management
ISO 9000:2000 and ISO 14000
Statistical Quality Control
Six Sigma
1. Value Added Analysis
Value-added analysis is the evaluation of all
work activities, materials flows, and
paperwork to determine the value that they
add for customers. Such an analysis often
reveals wasteful or unnecessary activities that
can be eliminated without jeopardizing
customer service.
2. Benchmarking
• It is the process of learning from best practices of other organizations
that produce superior performance. It is a systematic and continuous
process of measuring and comparing organization's business
processes and practices against those of the best organization.
• (Process, Product, Strategic) Benchmarking
• Benchmarking is of two types: Internal and External. The former
compares the processes of one unit with the other unit within the
same organization. External benchmarking, also known as the
competitor benchmarking, compares with the best organization.
3. Outsourcing
Outsourcing is the process of subcontracting services
and operations to other firms that can perform them
cheaper or better. If a business performs each and
every one of its own administrative and business
services and operations, it is almost certain to be
doing at least some of them in an inefficient or low-
quality manner. If those areas can be identified and
outsourced, the firm will save money and realize a
higher-quality service or operation.
4. Speed: Reducing Cycle Time
• Cycle time is the time needed by an organization
to develop, make, and distribute products or
services. If a business can reduce its cycle time,
quality will often improve.
• Just In Time Management
5. ISO 9000:2000 and ISO 14000
• ISO 9000:2000
They are set of quality standards created by
International Organization for Standardization
(ISO). Organizations obtain certification form ISO.
ISO standards cover product testing, employee
training, record keeping, supplier relations and
repair policies and procedures.
• ISO 14000
Standards of Environmental Management
6. Statistical Quality Control
• It is a set of specific statistical techniques that can be
used to monitor quality.
• Acceptance sampling: It involves sampling finished
goods to ensure that quality standards have been met.
• In-process sampling: It involves evaluating products
during production so that needed changes can be made.
• Descriptive Statistics: It is the description of quality
characteristics.
7. Six Sigma
• Six Sigma is a statistical- and data-
driven process that works by reviewing
limit mistakes or defects.
• It emphasizes cycle-time improvements
while reducing manufacturing defects to
no more than 3.4 occurrences per
million units or events.
Deming Management
• Set of Principles that lead to continuous Improvement
• Principles of Deming Management
- Quality improvement drives the entire economy
- Customer always comes first
- Do not blame the person, fix the system
- Plan-Do-Check-Act
Constant Purpose
Adapt new Philosophy
Reduce Dependence on Inspection
No Price Tag (Reduce Cost)
Continuous Improvement
Modern Training
Techniques and Principles
Institute Leadership
of Deaming Management
Drive Out Fear
Barriers Breakdown (Departments)
No Slogans (No vague targets)
No Quotas (No quantity Quota)
Appreciation
Education and Self-Improvement
Shared Transformation (By All)
Quality Improvement Process in TQM (PDCA Cycle)
