OM0016-Quality Management

FALL-2015
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Master of Business Administration - MBA Semester 4
OM0016-Quality Management
(Book ID: B2009)
Assignment (60 Marks)
Note: Answer all questions must be written within 300 to 400 words each. Each Question carries
10 marks 6 X 10=60.
Q1. Answer the following questions:
a. What is the need for quality management?
b. What are the advantages of ISO 9000 standards?
c. What is the structure of Quality Management System (QMS)?
d. Explain any four attributes of a quality leader.
Answer. a. “Quality management” ensures superior quality products and services. Quality of a
product can be measured in terms of performance, reliability and durability. Quality is a crucial
parameter which differentiates an organization from its competitors. Quality management tools
ensure changes in the systems and processes which eventually result in superior quality products
and services. Quality management methods such as Total Quality management or Six Sigma have
a common goal -
Q2. Write short notes on:




QS 9000
Attaining quality culture through employees
Importance of quality control
Double sampling plan
Answer. QS 9000
QS 9000 was developed in 1994 for the automotive industry to provide requirements for the
quality systems on the basis of the needs of the automotive sector. The requirements were
developed by Chrysler, Ford, General Motors and other major truck manufacturers. The use of QS
9000 in the automotive industry has led to the elimination of demands and waste due to
redundancy in the systems being followed. Companies following QS 9000 are considered to offer
better products in terms of standards and quality.
Q3. Forces of change are the factors that drive or stimulate the need for a change in an
organization. Some of these are external, arising from outside the organization whereas others
are internal, arising from sources within the organization. Discuss the external and internal
forces of change.
Answer. The external environment is those factors that occur outside of the company that cause
change inside organizations and are, for the most part, beyond the control of the company.
Customers, competition, the economy, technology, political and social conditions and resources
are common external factors that influence the organization. While there are seemingly endless
external considerations that can motivate an organization to change, a few common
considerations should be constantly monitored. These include economic factors, competitive
dynamics, new technology,
Q4. “Six Sigma In Healthcare
Published: Jun 12 2004, 00:00 IST
Written by Mr. Gopal Kulkarni, Master Black Belt - Six Sigma and Founder & Managing Director,
Synagoge Knowledge Services Six Sigma is a powerful problem solving technique that helps in
reducing variation in any process by using powerful statistical tools for analysis. Six sigma has
been successfully used by various organizations as an enabler for business strategies leading to
huge additions in their yearly turnover and at the same time improving customer satisfaction by
quantum leaps. This article describes how this methodology can be used in hospitals to enhance
customer care activities and reduce wastage to improve the bottom line.
Healthcare In India
A huge percentage of the expenditure in the healthcare segment is borne by the government
sector. A large chunk of money spend on healthcare by private organizations is limited to urban
areas. There is a growth in investment from private organizations in the tertiary healthcare
sector. They provide for the multi-specialty hospitals and super specialty hospitals. A large part
of the government funds go into primary healthcare and the rest goes into the upkeep of large
hospitals.
When we consider the large hospitals (private or government) there is increasing pressure on
the organization to better their performance in customer care and at the same time suffer huge
price pressures because of the increasing influence of insurance in healthcare. Rapidly changing
technologies, escalating manpower costs, increased regulations and consumer activism leads to
further pressures to reduce costs and enhance productivity and ROI.
How does six sigma help? Let us take an example of a patient undergoing a diagnostic
examination. The process steps for the diagnostic examination would be: Let us look at this
process from two angles: One from the customer’s (patient) point of view and another from the
hospitals’ point of view.
From a patient’s angle his need would be that of a defect free report in the shortest possible
time. He would also expect reasonable charges for the service, comfortable environment and a
courteous staff. From the hospitals angle, the need would be to maximize the number of
patients attended to within an available time period so as to minimize the cost of examination
and ensure customer loyalty.
Given these two needs you will find that the goals of both the hospital and the patient are one
and the same. If the hospital is able to minimize the time for turnaround, it can maximize the
number of examinations and utilize its diagnostic equipment to the fullest.
This is where six sigma can help. It can reduce the variation in the time taken for a particular
process.
For example, let us try to reduce the variation in the time taken for a diagnostic scan. The time
taken is defined as the time period from when the patient enters the hospital / clinic to the time
he gets the report. When data of this time is collected over a period of time, it can be
represented by a normal distribution curve as shown below. As the curve becomes flatter, the
variation is higher. Let us assume that the mean time is 4 hours and standard deviation (a
measure of variation) 1 hour.
Going by the characteristics of the normal curve it would mean that 99.73% of the patients get
their reports between one and seven hours. If the standard deviation is reduced by half it would
mean that the same process can give an output within 2.5 to 5.5 hrs.
How does one go about reducing the variation or even the mean? The output (time taken for
scanning) can be represented in a mathematical form:
Y is the output and the X’s are the variables affecting the output. The power of six sigma lies in
identifying those X variables that have the maximum impact on the variation and also those X’s
that have the maximum impac on the mean time. Using tools like hypothesis testing, simulation
design of experiments etc, we can arrive at the critical X’s. When we control these X’s, we can
reach our goal of minimizing the time taken for scanning.
What benefits does the hospital derive from this?
• Reduced output time, leading to better utilization of time
• Higher productivity, savings on manpower cost per patient
• Improved cycle time, leading to customer satisfaction and more loyalty
We can replace the diagnostic time by any other parameter like: Reduced pharma inventories,
Reduction in discharge time, Price realization, Cost/bed, Bed utilization, Plugging revenue
leakage, Asset utilization and Reducing patient queues.
Improvements
Six Sigma methodology can still be applied to improve these parameters. The robustness and
foolproof data collection needed for the application of Six sigma in services is achieved by the
increased use of information technology. Although, the solution itself is derived from the six
sigma process the use of IT in the method ensures consistency and reduction in variation.
In conclusion it can be said that the absence of a physical product as in the healthcare sector
does not stop or limit the usage of this excellent tool that can streamline your business and
increase the turnover. All that is required would be rigorous data collection and data based
decision making.”
Source:
Kulkarni
healthcare/107164/0
Gopal.
http://www.financialexpress.com/news/six-sigma-in-
Question: From the above articles evaluate how six sigma can aid enhance healthcare.
Answer. Once Six Sigma is introduced and begins to take hold within the realm of patient care,
initial efforts will likely focus on existing processes that appear to be dysfunctional or more often
prone to error. The Six Sigma approach to this type of process is referred to as DMAIC: Define,
Measure, Analyze, Improve, Control. This may sound somewhat like previously tried operational
improvement processes, and it also sounds like the nursing process itself which requires
caretakers to assess, plan, implement and evaluate. Despite superficial similarities, Six Sigma is
unlike any initiative
Q5. Elaborate on Quality Function Deployment (QFD).
Answer. Quality function deployment (QFD) is a “method wily to transform qualitative user
demands into quantitative parameters, to deploy the functions forming quality, and to deploy
methods for achieving the design quality into subsystems and component parts, and ultimately to
specific elements of the manufacturing process.”, as described by Dr. Yoji Akao, who originally
developed QFD in Japan in 1966, when the author combined his work in quality assurance and
quality control points with function
Q6. a. Explain the different modes of failures.
b. What is terotechnology?
c. What are reasons for using gap models?
d. Explain the types of Knowledge Support System (KSS).
Answer. a. Failure mode
The specific manner or way by which a failure occurs in terms of failure of the item (being a part
or (sub) system) function under investigation; it may generally describe the way the failure occurs.
It shall at least clearly describe a (end) failure state of the item (or function in case of a Functional
FMEA) under consideration. It is the result of the failure mechanism (cause of the failure mode).
For example; a fully fractured axle, a deformed axle or a fully open or fully closed electrical
contact are each a separate
FALL-2015
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