Page 184 - DMGT501_OPERATIONS_MANAGEMENT

Operations Management

Notes 2. It maintains high standards of quality: The SQC technique as described above (though
Control Charts and Acceptance Sampling Techniques) helps in removing rejections and/
or by improving through reworking whether felt necessary and hence the outgoing
standard is quite higher as compared to in the absence of SQC Technique. This increases
the goodwill of the company which gives intangible benefits.
3. Reduces expenses of inspection: It reduces the expenses of as lot size to be inspected is very
small as compared to 100% inspection and thus enables the product to be manufactured at
lower cost.
4. Ensures standard price: As the outgoing quality of the product is a standard/uniform,
hence the producer is able to secure the standard price for all standard products. Thus, it
increases the profitability of the concern.
5. Feeling of responsibility among the workers: Among the workers a feeling of responsibility
develops because they begin to understand that their work is being inspected very minutely,
hence they work carefully and it helps in increasing their morale.

6. Reduces monotony & unnecessary fatigue of inspection: As 100% inspection is very
monotonous and is likely to cause unwillingness at the part of quality inspection, thus
SQC which is a technique implying sampling/acceptance plans is not monotonous &
hence helps in reducing their unwillingness & increasing degree of quality.

6.12 Human Behaviour in Managing Quality

Human Aspects of Quality Assurance

Organisational commitment to quality has to be developed through the powers of education the
persons involved i.e. the people who make up the organisation. It is immaterial whether the
education process is carried through formal training or through participation in programs such
as ‘Quality Circle’.
The education will be aimed at:

1. Commitment to quality by everyone right from the level of the messenger/worker to
chairman/M.D. of the organisation.
2. Enabling the employee to perform his role efficiently (thus quality circle or JIT concept)
and promoting his interactions with other employees.
3. Developing the systems and procedures for quality gestation & maintenance Quality
management is no more for the product certification.
(ISI -Certificate) but it is for the System Certification thus systems like ISO-1000 etc. Hence:
QC QA i.e. Quality Control to Quality Assurance through Quality System like ISO-
9000/14000 is a step towards TQM i.e. Maximization of quality products achieved at optimal
cost.

6.13 Total Quality Management (TQM)

TQM is a quality-focused customer-oriented integrative management method that emphasises
continuing and cumulative gains in quality, productivity and cost reduction. These gains are
achieved through continuous improvement in product design, reduction in operating costs,
reduction in operating losses, avoidance of wastage of time, effort and material in an form,
removal of production-line deficiencies, upgradation of skills and empowerment of employees

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