GE6757 UNIT-1.ppt

GE6757-TOTAL QUALITY
MANAGEMENT

OBJECTIVES
• To understanding of Quality Management principles and process.

SYLLABUS
UNIT I
INTRODUCTION
Introduction - Need for quality - Evolution of quality -
Definitions of quality - Dimensions of product and service
quality - Basic concepts of TQM - TQM Framework -
Contributions of Deming, Juran and Crosby - Barriers to TQM -
Quality statements - Customer focus - Customer orientation,
Customer satisfaction, Customer complaints, Customer
retention - Costs of quality.

UNIT II
TQM PRINCIPLES
Leadership - Strategic quality planning, Quality Councils -
Employee involvement – Motivation, Empowerment, Team
and Teamwork, Quality circles Recognition and Reward,
Performance appraisal- Continuous process improvement -
PDCA cycle, 5S, Kaizen-Supplier partnership– Partnering,
Supplier selection, Supplier Rating.

UNIT III
TQM TOOLS AND TECHNIQUES I
The seven traditional tools of quality - New management tools - Six
sigma: Concepts, Methodology, applications to manufacturing,
service sector including IT - Bench marking - Reason to bench
mark,Bench marking process - FMEA - Stages, Types.

UNIT IV
TQM TOOLS AND TECHNIQUES II
Control Charts - Process Capability - Concepts of Six Sigma - Quality
Function Development (QFD) -Taguchi quality loss function - TPM -
Concepts, improvement needs - Performance measures.

UNIT V
QUALITY SYSTEMS
Need for ISO 9000 - ISO 9001-2008 Quality System - Elements,
Documentation, Quality Auditing -QS 9000 - ISO 14000 - Concepts,
Requirements and Benefits - TQM Implementation in manufacturing
and service sectors..

TEXTBOOK:
1.Dale H. Besterfiled, et at., "Total quality Management", Pearson
Education Asia, Third Edition,Indian Reprint 2006.
REFERENCES:
1.James R. Evans and William M. Lindsay,"The Management and Control
of Quality", 8th Edition,First Indian Edition, Cengage Learning, 2012.
2.Suganthi.L and Anand Samuel,"Total Quality Management", Prentice
Hall (India) Pvt. Ltd., 2006.
3.Janakiraman. B and Gopal .R.K., "Total Quality Management - Text and
Cases", Prentice Hall (India) Pvt. Ltd., 2006.

UNIT – I
What is Quality ?
• Quality is the degree to which a commodity meets the requirements of the
customer .
• Quality is in its essence a way of management of the organization.
• A distinctive attribute or characteristic possessed by someone or something.

What is Quality ?
• Quality is conformance to customer requirements
• Quality is about meeting the minimum standard required to satisfy customer
needs.
• Quality is fitness for use
• Quality is the totality of features and characteristics of a product or service
that bear on its ability to satisfy stated and implied needs of customer.

Quality In an information technology product or service
• quality is sometimes defined as "meeting the requirements of the
customer."
• The term quality assurance describes any systematic process for ensuring
quality during the successive steps in developing a product or service.

Quality in management
• A quality management system (QMS) is a collection of business processes
focused on achieving quality policy and quality objectives to meet
customer requirements
Quality In manufacturing
• a measure of excellence or a state of being free from defects, deficiencies
and significant variations.

Quality in education
• Quality in education is a dynamic concept. It evolves with time and is
subject to social, economic and environmental conditions.
• However, international human rights law provides a general legal
framework that guarantees quality education.

Quality in Software
• Software quality is a field of study and practice that describes the
desirable attributes of software products.
In business
• quality has a pragmatic interpretation as the non-inferiority or
superiority of something.

Need for quality
• Competition – Today’s market demand high quality products at low cost.
Having `high quality’ reputation is not enough! Internal cost of
maintaining the reputation should be less.
• Changing customer – The new customer is not only commanding priority
based on volume but is more demanding about the “quality system.”

Need for quality
• Changing product mix – The shift from low volume, high price to high
volume, low price have resulted in a need to reduce the internal cost of
poor quality.
• Product complexity – As systems have become more complex, the
reliability requirements for suppliers of components have become more
stringent.

Need for quality
• Higher levels of customer satisfaction – Higher customers expectations
are getting spawned by increasing competition.
• The quality of your work defines you- Whoever you are, whatever you do,
I can find the same products and services cheaper somewhere else.But
your quality is your signature.

Evolution of quality –Means & Focus
18
1975 1980 1985 1990 1995 2000
Operation Customers Innovations
Quality
of
Work life
Quality
Circle
Productivity
Employee
Involvement
Quality
Employees
Empowerment
Total
Quality
Self
Directed
Teams
TQC/TQM
Self
Directed/Managed
Teams

Evolution of quality Era
19
1900 1920 1940 1960 1980 1990
2000
Craftsman
Foreman
Inspection
SQC
TQC
TQM
TQC &CWQC
Evolution
Years

Define Quality
• Predictable degree of uniformity and dependability at low cost and suited to
the market –Deming.
• Fitness for use-Juran.
• Conformance to requirements – Crosby.
• Minimum loss imparted by a product to society from the time the product is
shipped – Taguchi.

Define Quality
• A way of managing tile organization – Feigenbaum
• Correcting and preventing loss, not living with loss - Hosffin .
• The totality of characteristics of an entity that bear on its ability to satisfy stated
and implied needs – ISO

QUANITIFICATION OF QUALITY
Q= P / E
P = Performance
E = Expectations
Q = Quality

DIMENSION OF QUALITY
• Quality has 2 dimensions.
These dimensions are
1. Product Quality.
2. Service Quality

DIMENSION OF QUALITY
Product Quality
1. Performance:
primary product characteristics, e.g. picture brightness in TV.
2. Features:
secondary characteristics, added features, e.g. remote control, picture-in-
picture.
3. Usability:
ease of use with minimum training.

Product Quality (cont.)
4. Conformance:
meeting specifications, industry standards,. (E.g. ISI specs.,emission
norms).
5. Durability
how long product lasts before replacement
6. Serviceability
ease of getting repairs, speed of repairs,
courtesy and competence of repair person

7. Aesthetics:
how a product looks, feels, sounds, smells,
or tastes
8. Safety :
assurance that customer will not suffer
injury or harm from a product; an especially
important consideration for automobiles
9. Perceptions:
subjective perceptions based on brand name,
advertising, and the like

10. Efficiency:
ratio of output to input. E.g. mileage, braking distance, processing time.
11. Reputation:
subjective assessment based of past performance,
brand image, industry ranking.

Dimensions of Quality:
Service Quality
 Time and Timeliness
How long must a customer wait for service,
and is it completed on time?
Is an overnight package delivered
overnight?
 Completeness:
Is everything customer asked for provided?
Is a mail order from a catalogue company
complete when delivered?

Dimensions of Quality:
Service (cont.)
Accessibility and convenience
 How easy is it to obtain service?
 Does a service representative answer you calls quickly?
Accuracy
 Is the service performed right every time?
 Is your bank or credit card statement correct every month?
Responsiveness
 How well does the company react to unusual situations?
 How well is a telephone operator able to respond to a customer’s questions?

INTRODUCTION TO TQM
What is TQM?
TQM is the integration of all functions and processes within
an organization in order to achieve continuous
improvement of the quality of goods and services. The
goal is customer satisfaction.
“ No doubt , humans are always deficient”
(Al-Quran)

Total Quality Management
Introduction
•Total – Made up of the whole(or)
Complete.
•Quality – Degree of Excellence a product
or service provides to the customer in
present and future.
•Management – Act , art, or manner of
handling , controlling, directing, etc.
TQM is the art of managing the whole to achieve excellence.

• "TQM is a management approach for an organization, centered on quality,
based on the participation of all its members and aiming at long-term
success through customer satisfaction, and benefits to all members of the
organization and to society."

CHARACTERISTICS OF TQM
1. TQM is a customer oriented.
2. TQM required a long term commitment for continuous improvement
of all processes.
3. TQM is teamwork.
4. TQM requires the leadership of top management and continuous
involvement.
5. TQM is a strategy for continuous improving performance at all levels
and in all areas of
responsibility.

TQM BASIC CONCEPTS
• Management Involvement – Participate in quality program, develop
quality council, direct participation
• 2. Focus on customer – who is the customer – internal and external, voice
of the customer, do it right first time and every time.
• 3. Involvement and utilisation of entire work force – All levels of
management

TQM BASIC CONCEPTS(cont.)
4. Continuous improvement – Quality never stops, placing orders, bill
errors, delivery,
minimise wastage and scrap etc.
5. Treating suppliers as partners – no business exists without suppliers.
6. Performance measures – creating accountability in all levels

Definition TQM
• TQM is composed of three paradigms:
• Total: Organization wide
• Quality: With its usual Definitions, with all its complexities (External
Definition)
• Management: The system of managing with steps like Plan, Organise,
Control, Lead, Staff, etc.

Definition TQM(cont.)
• TQM is the management approach of an organization, centered on
quality, based on me participation of all its members and aiming at
long-term success through customer satisfaction. and benefits to all
members of me organization and to society.- ISO

• TQM is an integrated organizational approach in delighting
customers (both internal and external) by meeting their
expectations on a continuous basis through every one
involved with the organization working on continuous
improvement in all products, services, and processes along
with proper problem solving methodology - INDIAN
STATISTICAL INSTITUTE ( ISI )

• TQM is people - focused management system that aims at
continual increase in customer satisfaction at continually
lower cost. TQM is a total system approach and an integral
part of high level strategy. It works horizontally across
functions and departments, involving all employees, top to
bottom, and exceeds backwards and forward to include the
supply chain and the customer chain – TOTAL QUALITY
FORUM OF USA

 Philips B Crosby
Quality is Conformance to requirements
W.Edwards Deming
A predictable degree of uniformity and dependability
at low cost and suited to market

 Bill Conway
Development,manufacture,administration And distribution of consistently
low cost and products and services that customers need and want.
• Joseph Juran
Total quality is defined as fitness for use or purpose

PRINCIPLES OF TQM
•Customer’s requirements must be met the first
time, every time.
•There must be agreed requirements, for both
internal and external customers.
•Everybody must be involved, from all levels and
across all functions.

PRINCIPLES OF TQM(cont.)
•Regular communication with staff at levels is must.
Two way communication at all levels must be
promoted.
• Identifying training needs and relating them with
individual capabilities and requirements is must.

•Top management’s participation and commitment is
must.
• A culture of continuous improvement must be
established.
• Emphasis should be placed on purchasing and
supplier management
• Every job must add value.
• Quality improvement must eliminate wastes and
reduce total cost.

•There must be a focus on the prevention of
problems.
• A culture of promoting creativity must be
established.
•Performance measure is a must at organization,
department and individual levels. It helps to asses
and meet objectives of quality.
• There should be focus on team work.

OBSTACLES (BARRIERS) IN IMPLEMENTING TQM
 Lack of Management Commitment
 Inability to change Organizational culture
 Improper planning
 Lack of continuous training and education
 Failure to continually improve
Incompatible organizational structure and isolated
individuals and departments

OBSTACLES (BARRIERS) IN IMPLEMENTING
TQM(cont.)
Ineffective measurement techniques and lack of
access to data and results
 Paying inadequate attention to internal and
external customers
 Inadequate use of empowerment and teamwork

BENEFITS OF TQM
 Improved quality
 Employee participation
 Team work
 Working relationships
 Customer satisfaction

BENEFITS OF TQM(cont.)
 Employee satisfaction
 Productivity
 Communication
 Profitability
 Market share

Guru’s of TQM
•Walter.A.Shewhart - TQC &PDSA
•W.Edwards Deming - 14 Points & PDCA
•Joseph.M.Juran - Juran’s Trilogy
•A.Feiganbaum - Customer
Requirement, Employee Involvement, TQC.
57

W. Edward Deming
Biographical:
•Pioneered the use of statistics and sampling methods
•Became interested in the work of statistician Walter
Shewhart and believed the principles could be applied
to non-manufacturing environments
•In the early 1950’s he lectured Japanese business on
quality concepts leading directly to the emergence of
Japan as a quality leader

CONTRIBUTIONS OF W. Edward Deming
• Encouraged the adoption of a systematic approach to
problem solving known as the Deming or PDCA (Plan Do
Check Act) cycle
59
Plan
Do
Check
Act
- Objectives
- Methods
- Train
- Execute
- Against
objectives
- Immediate remedies
- future actions

Deming’s 14 Points for Management
1. Create constancy of purpose for the
improvement of the product and service.
2. Adopt the new philosophy.
3. Cease dependence on inspection to achieve
quality.
4. End the practice of awarding business on the
basis of price tag alone. Instead, minimize
total cost by working with a single supplier.

Deming’s 14 Points for Management(cont.)
5. Improve constantly and forever every process for
planning, production, and service.
6. Institute training and retraining.
7. Adopt and institute leadership.
8. Drive out fear.
9. Breakdown barriers between staff areas.
10. Eliminate slogans, exhortations, and targets for
the workforce.

Deming’s 14 Points for Management(cont.)
11. Eliminate numerical quotas for the workforce and
numerical goals for management.
12. Remove barriers that rob people of workmanship.
13. Institute a vigorous program of education and self-
improvement for everyone.
14. Put everybody in the company to work to accomplish
the transformation.

Joseph Juran
Biographical:
•Like Deming, was invited to Japan in the early
1950’s by the Union of Japanese Scientists and
Engineers (JUSE)
•Strong advocate of the need for quality planning
and the setting of clear and measurable goals
•Has been very critical of some of the quality
initiatives of the 1990’s as lacking substance

THE JURAN TRILOGY
•Juran views quality as fitness for use.
•Juran Trilogy is designed to reduce the cost of
quality over time.
1. QUALITY PLANNING
2. QUALITY CONTROL
3. QUALITY IMPROVEMENT

1. QUALITY PLANNING
•Determine internal & external customers.
•Their needs are discovered.
•Develop product / service features.
•Develop the processes able to produce the product
/ service features.
• Transfer plans to operations.

2. QUALITY CONTROL
Control is used by operating forces to help meet the
product, process and service requirements.
It consists of the following steps
1. Determine items to be controlled.
2. Set goals for the controls.
3. Measure actual performance.
4. Compare actual performance to goals.
5. Act on the difference.

3. QUALITY IMPROVEMENT
Aims to attain levels of performance that are
higher than current levels.
It consists of the following steps
• Establishment of quality council.
• Identify the improvement projects.
• Establish the project teams with a project
leader.
• Provide the team with the resources.

Juran’s 10 Steps to Quality Improvement
1. Build awareness of the need and opportunity
for improvement.
2. Set goals for improvement.
3. Organize to reach the goals (establish a
quality council, identify problems, select
projects, appoint teams, designate
facilitators).
4. Provide training.
5. Carry out projects to solve problems.
6. Report progress.

Juran’s 10 Steps to Quality Improvement(cont.)
7. Give recognition.
8. Communicate results.
9. Keep score.
10.Maintain momentum by making annual
improvement part of the regular
systems and processes of the company.

CONTRIBUTIONS OF CROSBY
The Four absolutes of quality are
1. Quality is defined as conformance to
requirements.
2. The system for causing Quality is
prevention.
3. The performance standard must be zero
defects.
4. The measurement of Quality is the Price of
Nonconformance

Crosby’s 14 Steps to Quality Improvement
1. Make it clear that management is committed to
quality.
2. Form quality improvement teams with
representatives from each department.
3. Determine where current and potential quality
problems lie.
4. Evaluate the cost of quality and explain its use as a
management tool.
5. Raise the quality awareness and personal concern
of all employees.

Crosby’s 14 Steps to Quality Improvement(cont.)
6. Take actions to correct problems identified
through previous steps.
7. Establish a committee for the zero-defects
program.
8. Train supervisors to actively carry out their
part of the quality improvement program.
9. Hold a “zero-defects day” to let all
employees realize that there has been a
change.

10. Encourage individuals to establish
improvement goals for themselves and their
groups.
11.Encourage employees to communicate to
management the obstacles they face in
attaining their improvement goals.
12.Recognize and appreciate those who
participate.

13. Establish quality councils to communicate
on a regular basis.
14. Do it all over again to emphasize that the
quality improvement program never ends.

Comparison
Deming Juran Crosby
Definition of
quality
Continuous
improvement
Fitness for use Conformance to
requirements
Emphasis Tools/system Measurement Motivation
(behaviour)
Types of tools Statistical
process control
Analytical, cost-
of-quality
Minimal use
Use of goals and
targets
Not used Significant
emphasis
Posted goals for
workers
75

Quality statements
•Vision statement – a short declaration of what the
organization hopes to be tomorrow.
•Mission statement – a statement of purpose –who we
are, who are our customers, what we do , and how we
do it.
•Quality policy – is a guide for everyone in the
organization ,how they should provide products and
services to the customers.

Strategic Planning
Strategic business planning is similar to strategic quality
planning.
7 steps to strategic planning are
• Customer needs
• Customer positioning
• Predict the future
• Gap analysis
• Closing the gap
• Alignment
• Implementation.

Strategic Quality Goals and Objectives
•Goals must be focused
•Goals must be concrete
•Goals must be based on statistical evidence
•Goals must have plan or method with
resources
•Goals must have a time-frame
•Goals must be challenging yet achievable

Goals of Customer Focus:
End goal of customer focused strategies is the same:
Boosting retention and repurchase =
more sales!!!
Creating Better
Products or
Services
Offering
compelling
customer
experience
Building deeper
customer
relationships

Customer Satisfaction
Three Part System
Customer Expectations
Company Operations
(Processes)

Customer satisfaction
•Customer is the Boss or ’King’
•Customer dictates the market trends and direction
•Customer not only has needs to be supplied( basic
performance functions)
•Also he ‘wants what he wants!’( additional features
satisfy him and influence his purchase decision)
•Hence the Suppliers and Manufacturers have to
closely follow at the heel of the customer.

Norman’s Customer satisfaction model
Customer
Quality C,Q

Quality
System
Quality
Product/
Service
Customer
Satisfaction
Customer
Focus

Customer Satisfaction Organizational Diagram
CUSTOMERS
Front-line Staff
Functional
Department
Staff
CEO
Sr.
Mgrs

Teboul Model of Customer Satisfaction
•
Customer needs
Company
Product/Service
offer

What is customer satisfaction?
•Is it due to Product quality?
•Is it due to pricing?
•Is it due to good customer service ?
•Is it due to company reputation?
•Is it something more?

Customer types
•External and Internal customers
•External – current, prospective and lost customers
•Internal – Every person in a process is a customer of
the previous operation.( applies to design,
manufacturing, sales, supplies etc.) [Each worker
should see that the quality meets expectations of
the next person in the supplier-to-customer chain ]
•TQM is commitment to customer-focus - internal
and external customers.

Quality Costs
COST OF QUALITY IS THE COST OF NON QUALITY
1: 10:100 Rule
“A stitch in time saves nine”

Types of Quality Costs
The cost of quality is generally classified into four categories
1. Cost of Prevention
2. Cost of Appraisal
3. Cost of Internal Failure
4. Cost of External Failure

Cost of Quality
•Quality affects all aspects of the
organization
•Quality has dramatic cost implications of:
•Quality control costs
• Prevention costs
• Appraisal costs
•Quality failure costs
• Internal failure costs
• External failure costs

Cost of Quality – 4 Categories
Early detection/prevention is less costly

I. Preventive Cost Category
1. Marketing/Consumer/User:
Costs are incurred in the accumulation and continued evaluation of customer and
user quality needs and perceptions affecting user satisfaction with the
organizations product or service.
2. Product/Service/Design Development:
Costs are incurred to translate customer and user needs in to reliable quality
standards and requirements and to manage the quality of new product or service.
3. Purchasing:
Costs are incurred to assure conformance requirements of supplier parts, materials
or processes and to minimize the impact of supplier nonconformance on the
quality of delivered products or services.
4. Operations (Manufacturing or service):
Costs are incurred in assuring the capability and readiness of operations to meet
quality standards and requirements and to impart quality education to operating
personnel.
5. Quality Administration:
Costs are incurred in the overall administration of the quality management
function.

II. Appraisal Cost Category
1. Purchasing Appraisal Costs:
Purchasing appraisal costs can generally be considered the costs incurred
for the inspection and test of purchased supplies or service to determine
acceptability to use.
2. Operations (Manufacturing or service) Appraisal Costs:
Operations appraisal costs can generally be considered the costs incurred
for the test or audit required to determine and assure the acceptability of
product or service.
3. External Appraisal Costs:
External appraisal costs are incurred for field set up or installation and
check out for the acceptance of customers.
4. Review of Test & Inspection:
Costs are incurred for regular reviewing inspection and test data, prior to
release of the product for shipment.
5. Miscellaneous Quality Evaluations:
Costs involved in quality audits to assure continued ability to provide
acceptable support to the production process.

III. Internal Failure Cost Category
1. Product or Service Design Failure Costs (Internal):
Design failure costs are the unplanned costs that are incurred
because of inherent design inadequacies.
2. Purchasing Failure Costs:
Costs which are incurred due to the rejects of purchased items.
3. Operations (Product or Service) Failure Costs:
The costs associated with nonconforming product or service
discovered during the operations process. It is categorized in to
three distinct areas: material review and corrective action,
rework or repair costs and scrap costs.

IV. External Failure Cost Category
1. Complaint Investigations of Customer or User Service:
It includes the total cost of investigating, resolving and responding to
individual customer and user complaints.
2. Returned Goods:
Costs incurred in evaluating, repairing and replacing goods.
3. Retrofit and Recall costs
Retrofit and recall costs are those costs required to modify or update
products or field service facilities to a new design change level, based
on major redesign due to design deficiencies.
4. Warranty Claims
Warranty costs include the total costs of claims paid to the customer or
user after acceptance to cover expenses, including repair costs, such as
removing defective hardware from a system, or cleaning costs, due to
food or chemical service accident.

IV. External Failure Cost Category-contd.,
5. Liability Costs
Liability costs are organization-paid costs due to liability
claims, including the cost of product or service liability
insurance.
6. Penalties
Penalty costs are those costs incurred because less than full
product or service performance is achieved as required by
contracts with customers or by government rules and
regulations.
7. Customer or user good will
This category involves costs incurred that customers are not
satisfied with quality of delivered product or service because
the customer’s quality expectations were.
8. Lost Sales
Lost sales comprise the value of the contribution to profit.

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