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Quality In business Cheat Sheet (DRAFT) by

Business quality control

This is a draft cheat sheet. It is a work in progress and is not finished yet.

What is Quality

Meeting the customers requir­ements


The ability of a product or service
to continue to meet the customer’s
requir­ements satisf­act­orily over a period of

Importance on customer loyalty

Cost less to retain than acquire
Longer relati­onship higher profit­ability
Half new customers come through referrals

Levels of Quality

System focus
Specific projec­t/p­rocess
Daily work

Old vs new Satisf­action model

• Perfor­mance on the attributes of certain categories produces higher levels of satisf­action than others
• more is better, i.e. the more you perform on each service attribute the more satisfied the customers will be
Critical to Quality Charac­ter­istics
• Dissat­isfier – ‘Must be’s’ – Cost of Entry • Satisfier – More is better – Compet­itive • Delighter – Latent Need – Differ­ent­iator

Levels of Customer Requir­ement

Basic – fundam­ental features,
customer does not even think about
Normal – expected features, stated
by customers
Latent – additional features,
customers not aware they need them

Cost of Quality

Total cost of both preven­tative and reparatory
- Internal failure costs – those associated with defects found at the company
- External failure costs – those associated with defects found after the customer receives the product

Quality Tools and Areas of use

Data Collection and Analysis
-Check sheets
Gathering Data, no additional processing required, simple layout
- Scatter Diagram
Establish associ­ation between two variables, shows strong or weak correl­ations
Cause Analysis
Ishikawa Diagram (fishbone or cause-­effect diagram)
Caterg­orise causes of problems or issues and identify root couse and potential outcomes
Pareto Diagram
80% of problems come from 20% causes, prioritise areas for improv­ement and investment first
Process Analysis
Sequences of activities and flows of materials, pin point places where quality measur­ements should be taken
Poka - Yoke
Predic­tion, recognise defect is about to occur - Detection, recogn­ising that a defect has occured and stopping the process
Failure Mode Effect Analysis
Analysing potential reliab­ility problems in devleo­pment cycle where it is easier to take actions
Identify Potential failure modes and effects on operations to mitigate failures
Capture historical inform­ation for improv­ement
Cosistent use in design process

Cost of Quality

Total cost of both preven­tative and reparatory
- Internal failure costs – those associated with defects found at the company
- External failure costs – those associated with defects found after the customer receives the product

Fundam­entals of FMEA

1. Define scope, functional requir­ements, design
parameters and process steps.
2. Identify potential failure modes
3. Potential failure effect
4. Severity
5. Potential causes
6. Occurrence
7. Current controls
8. Detection
9. Risk Priority Number (RPN)
10.Actions recomm­ended

4 Houses of Quality

1. Identify customer requir­ements
2. Identify technical requir­ements
3. Relate technical requir­ements to customer requir­ements
4. Consider interr­ela­tio­nships between technical requir­ements
5. Develop importance ratings
6. Conduct an evaluation of competing products and services
7. Evaluate technical requir­ements and develop targets

Why would a project have risk?

Unique, complex, assump­tions and constr­aints, people, stakeh­older requir­ements, change, enviro­nment

Levels of risk management

Eliminate root cause
What leaads to it
Eliminate risk
prevent risk
Reduce risk
reduce likelihood
React to risk
emergency plans to react quickly
Crisis management
treat problems that occur from non-id­ent­ified risks

ISO 9000 Family

The ISO 9000:7 princi­ples:

Customer Focus
Engagement of people
Process approach
Evidence based decision making
Relati­onship Management

Advantages and disadv­antages of ISO certif­ica­tions


What is Six-Sigma?

“Level of process perfor­mance equivalent to producing only 3.4 defects for every 1 million opport­unities or operations [DPMO]. - using sigma based process measures and striving for six-sigma

Steps to implement six-sigma

Sigma 6 critical success factors

Strategic objectives
Champion projects
Support teams and overcome resistance
Quanti­fiable measures
Tools and analysis
Implement and improve project
Focus on business results
Teams and reduce waste
Qualified process improv­ement experts
Clear commun­ication
Set stretch objectives for improv­ements
measure and recognise financial benefits



What is SPC?

Statis­tical Process Control (SPC) is an indust­ry-­sta­ndard method­ology for measuring and contro­lling quality during the manufa­cturing process.

Cp and Cpk

Needs to be greater than 1 and approa­ching 2 but not too high. Cp close to 1-2 signif­icant range correct Cpk leans to one side if not 1-2

A+D 9001

• Create a more efficient and effective operation • Increase customer satisf­action and retention • Improve employee awareness and involv­ement • Reduce waste and increases profit­ability • Increase profits • Enhance marketing • Promote intern­ational trade
Disadv­antages of Certif­ication • From an Engineer’s perspe­ctive • Time consuming - lots of paperwork • Full of management jargon • High level process with limited commun­ication from management • Lack of unders­tanding - leading to poorly focussed efforts • Unclear quality benefits

Human reliab­ility curve

Human Error

Error of omission
Operator fails to perform step
Error of Commission
Operator performs step incorr­ectly or adds additional steps
Knowledge based
Wrong as did not assess situation
rule based
wrong rule used
fail to come up with solution
right intention excuted wrong
capture errors
routine behaviour incorrect in situatio ne.g. press enter when not meant to
Failure to carry out action
Errors of Omission
Mode errors
Right response in wrong mode
e.g. caps lock on password

Risk Attitudes

Risk Averse
Risk Neutral
Risk Seeking

Risk Management ISO 31000

Component 1 - Principles - What risk management is aiming to achieve + how its integrated in the structure
Component 2 - Risk Management framework design implement monitor etc.
Component 3 - Risk M Process - contin­ually monitor and review identify analyse select risk treatment

Importance Of

Risk Assessment
A systematic method of examining a process or system to identify potential hazards or failures
Quantitive - risk relating to numbers - numerical measure of outcome
Qualit­ative - Personal judgement as High, Medium or Low
Set of procedures allowing a qualit­ative or quanti­tative repres­ent­ation of risk
Prelim­inary Hazard Analysis - Start of risk assessment to identify potential hazards
What-if - Changing factors and seeing how those chnages affect outcomes, Can use scenarios to anticipate conseq­uences
HAZOP - List of Hazards, Then using process diagrams and guide words to look at potential deviations from normal operating conditions
Failure Mode Effect (FMEA) - Design out errors to produce reliable, safe and customer pleasing products
Human Reliab­ility Analysis - Human input to risk
Tree Methods
Fault tree - Potential causes of fault or failure in a system, Boolean logic TOP DOWN
Event Tree- Logical modelling technique to determine potential outcomes if fault occurs+ assessing probab­ilities BOTTOM UP
Cause and Effect- (Fishbone) Assit teams in caterg­orising the potential causes, identify root causes
Specific measures to mitigate or diminish the risk
Redundancy - Back up components that kick in is a component fails
Fault Tolerance - allows a system to continue to function in event of failure of part of system - decrease is propor­tional to level of failure

What is Risk?

is the exposure to harm, danger or loss
to someone or something valued, together
with an indication of how serious the harm
could be
• Risk:
• uncert­ainty based on a well grounded
(quant­ita­tive) probab­ility
• Risk = (the probab­ility that an event will occur)
x (the conseq­uences if it does occur)



8 Fundam­ental Concepts of Excellence

• Adding Value for Customers
• Creating a Sustai­nable Future
• Developing Organi­sat­ional Capability
• Harnessing Creativity and Innovation
• Leading with Vision, Inspir­ation and Integrity
• Managing with Agility
• Succeeding through the Talent of People
• Sustaining Outsta­nding Results

Phase of TQM Implem­ent­ation

Phase 1: Awakening
Phase 2: Progre­ssion
Phase 3: Under control
Phase 4: Customer focused redesign
Phase 5: Quality Culture

TQM - Total Quality Management

Critical Success Factors for Achieving TQM
• Highly visible commitment of leaders
• Link to few clear, strategic goals
• Bespoke approach
• Customer focus
• Clear unambi­guous commun­ication
• Good team facili­tation
• Employee empowe­rment

Good QMS

Customer requir­ements
Company requir­ements
Confidence in ability of organi­sation
Internal and external
Efficients utilis­ation of available resources

QMS - Quality Management System

A set of business processes designed to meet the company quality policy and object­ives, in order to deliver customer requir­ements
• Organi­sat­ional structure • Policies • Procedures • Processes • Resources