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    Total Quality


  • 8/6/2019 Total Quality Quality



    Total Quality Management (TQM) can be a confusing concept, partly because people view

    quality in relation to differing criteria based on their individual roles in the value chain, such as:


    delighting or pleasing the customer

    eliminating waste

    doing it right the first time


    Quality expressed both in terms of absolute & relative concept

    efinition of Quality

    Oxford Dictionary

    The degree of excellence

    ISO 9000

    Degree to which a set of inherent characteristics fulfils requirements.

    Philip Crosby

    Conformance to specification


    Fitness for use

    Japanese Industrial Standards (JIS)

    Totality of proper characteristics of performance which are the objects of

    estimation to determine whether a product or service satisfies the purpose of

    use or not.

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    What is Quality


    Quality is total composite product (goods and services) characteristics, through which

    the product in use will meet the needs and ex

    pectations of the customers.

    Concept of quality must start with identification of customer quality requirements and

    must end only when the finished product is placed into the hands of the customer who

    remains satisfied through various stages of relationship with the seller

    American Society of Quality Control (ASQC) and American National Standard Institute (ANSI)


    Quality is totality of features and characteristics of product (goods and services) that

    bears on its ability to satisfy given needs

    Approaches to define Quality

    Transcendent ( excellence)Approach

    Quality is absolute and universally recognisable.

    It relates to high standards & zero defects.

    There is no subjective judgement and is estimated by looking at the product

    Product Based (amount of desirable attribute)Approach

    Attributes of a particular product in a specific category

    These attributes are accepted as bench of quality by the industry

    Others in the same industry try to produce close to this quality

    Value Based Approach

    Quality is viewed in context of price

    Quality is satisfactory, if it provides desired performance at an acceptable price

    Customer looks at the total value proposition and not the price alone

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    Dimensions of Quality

    Performance primary characteristics of the product or service

    Aesthetics - appearance, feel, smell, taste

    Special features secondary characteristics, added features

    Conformance meeting specifications or industry standards

    Safety - risk of injury or harm

    Reliability - consistency of performance over time

    Durability - useful life of the product or service

    Perception - reputation

    Service after the sale - handling of complaints, customer satisfaction

    Service Quality

    1. Time & Timeliness

    customer waiting time, completed on time

    2. Completeness

    customer gets all they asked for

    3. Courtesy

    treatment by employees

    4. Consistency

    same level of service for all customers

    5. Accessibility & Convenience

    ease of obtaining service

    6. Accuracy

    performed right every time

    7. Responsiveness

    reactions to unusual situations

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    Two Aspects of Quality

    Quality of design measures how closelythe characteristics of products or services meet the

    needs and wants of customers.

    Conformance quality refers to the performance of a product or service according to design and

    product specifications.

    Benefits of Quality

    Gives positive company image

    Improves competitive ability

    Increase market share & net profits

    Reduces cost

    Improves employee morale

    Improves productivity.

    Quality is

    Q - Quest for excellence

    U - Understanding customer needs

    A - Action to achieve customer satisfaction

    L - Leadership

    I Involvement of people

    T Team spirit

    Y Yardstick to measure performance.

    Quality cost

    It is a technique by which all costs pertaining to delivering quality is captured & classified for

    evaluation of quality management efforts in an organization

    By expressing in monetary terms, top mgmt attention is captured.

    Can be used for motivational purpose for improvement at all levels

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    Cost of Quality

    Prevention Cost

    Cost associated with time spend in planning the quality system to prevent quality

    defects & problem cropping up.

    Consists of the following

    Cost incurred in accumulation & continued evaluation of customer needs

    Training Costs( employees, vendor development)

    Quality control procedures, quality improvement programs


    tra attention in design & production.

    Appraisal / inspection Costs

    Object is to find defects which have already occurred or make sure that a given level of

    quality is being met

    Consist of

    Cost of maintaining, testing & inspection( in line, final, field inspection)

    Process control costs

    Internal Failure Cost

    Incurred due to non-conformance


    Scrap and rework costs

    Cost of corrective action

    Down time

    Material/ product losses

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    External Failure Cost

    Occur when poor products reach customer


    Costs of customer complaints and returns

    Product recall costs

    Warranty claims costs

    Product liability costs


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    Evolution of Quality Management

    Mass Inspection






    Quality Control

    Quality manuals

    Product testing using SQC

    Basic quality planning

    Quality Assurance

    Emphasis on prevention

    Proactive approach using SPC

    Advance quality planning

    Total Quality Control

    All aspects of quality of inputs

    Testing equipments

    Control on processes

    Evolution of Quality Management

    Company wide Quality Control

    Measured in all functions connected with production such as




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    J M Juran Developed the idea of trilogy

    Quality Planning

    Quality Improvement

    Quality Control

    Conformance to specifications is necessary but not sufficient requirement of a product.

    Fitness for use by the consumer of the targeted market segment is an essential requirement in

    addition to conformance

    Quality Planning:

    Quality does not happen by accident, it must be planned.

    Identify the customers both external and internal.

    Determine customer needs & translate it into a language everybody can understand.

    Establish quality goals that meet the needs of customers and suppliers alike, and do so at a

    minimum combined cost.

    Optimize the product by developing & optimizing the process which produces this product.

    Prove process capabilityprove that the process can meet the quality goals under operating


    Quality Control

    Control is the process of detecting & correcting adverse change, as soon as it happens, so that

    the status quo is maintained.

    Conforming to quality specifications & adhering to standards & procedures require prompt

    corrective action of any sporadic problems.

    Only a process in control is predictable & hence receptive to efforts for further improvement.

    Resulting in reduction of chronic waste.

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    Quality improvement

    A Quality break through is needed to reduce substantially the chronic waste & achieve a new

    improved zone of quality control

    Quality break through takes us to an unprecedented level of performance, reducing incidence of

    chronic defects & their associated cost.

    Clear priorities for projects to be set & responsibility for guiding the projects has to be assigned.

    Otherwise no desire for improvement.

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    Demings 14-point

    Management Philosophy1. Create constancy of purpose for continual improvement of products & service

    Obligation that management should accept as a number one priority

    Create & publish the aims & purpose of the organization

    Set the course today in order to be in business tomorrow by setting long term goals.

    Resources must be allocated for research, training & continuing education to achieve

    the goals.

    Innovation must be promoted to ensure that the product & service does not become


    Cease dependence on inspection to achieve quality

    Management must understand that the purpose of inspection is to improve the process

    & reduce its cost.

    Reduce the need for inspection on a mass basis by building quality into the system in the

    first place.

    Mass inspection is managing for failure & defect prevention is managing for success.

    2. Adopt the new philosophy for economic stability

    A change is necessary in the old mgmt methods which are no longer effective for todays

    business environment.

    Organization must seek never ending improvement & refuse to accept non conformance.

    Concentrate on defect prevention rather than defect detection

    Every one in the organization including suppliers must be involved in the quality journey &

    change his / her attitude about quality

    New mgmt philosophy is not just an additional new technique to supplement existing ones.

    It is a radical philosophy advocating a complete change.

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    3. Cease dependence on inspection to achieve quality

    Management must understand that the purpose of inspection is to improve the process

    & reduce its cost.

    Reduce the need for inspection on a mass basis by building quality into the system in the

    first place.

    Mass inspection is managing for failure & defect prevention is managing for success.

    4. End the practice of awarding business on price tag alone

    Move towards quality of product, reliability of delivery and willingness to cooperate

    and improve. Build partnerships.

    The savings that can result from a relationship with a reliable supplier can by far

    outstrip the savings attainable by merely going for the lowest price.

    Move towards a single supplier for any one item or service, making them a partner in a

    long-term relationship of loyalty and trust.

    Also supplier will be encouraged & can easily convinced to adopt a philosophy of

    continuing improvement, open & honest communication & feedback.

    5. Improve constantly & for ever the system of production & service

    Search continually for problems, in order to improve quality & productivity constantly &

    decrease cost

    Always anticipate trouble & never be content( prevent rather than fire-fight). The

    process of quality improvement should spiral towards a specific objective.

    It is managements job to work continually on the system so that innovation can

    materialize more easily.

    All functions in an organization need to become quality conscious to deliver a quality


    6. Institute training on the job

    A continuous programme of on the job training needs to be instituted & this should

    include even top managers.

    Training & education are the corner stones of greater consistency.

    Training helps employees to perform their jobs in the best possible manner & also

    better understanding of the job.

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    7. Adopt & institute modern methods of supervision & leadership

    Efforts should be focused on helping people & machines to do a better job

    Supervision must change from chasing, to coaching and support. use mistake to learn

    rather than to blame.

    Leadership & supervision should concentrate on making the workers take more interest

    in their work

    Various abilities should be identified & properly utilized .

    Promote team work & mutual trust & provide innovative methods to accomplish the


    8. Drive out fear & create trust

    Management must encourage open, effective communication & team work.

    Fear is a barrier to improvement & innovation

    Management should create a secured environment by driving out uncertainty,

    ambiguity, & randomness in management practices .

    Successful joint working relationships, based on mutual respect & cooperation, can

    achieve much more.

    9. Remove barriers between departments & individuals

    Work as a team, foresee problems before they arise or tackle them if they happen to


    Performance of dept should be evaluated in terms of its contribution to the company as

    a whole

    Deming believe that the common causes of problems which affect every body amount

    to more than 85% of the total causes.

    People involved in diff levels need to realize that they each have to contribute to the

    common goal.

    10.Eliminate exhortation for the work force

    Exhortations that ask for increased productivity without providing specific improvement

    methods can handicap an organization

    Eliminate slogans, exhortations, and targets that ask for zero defects, and new levels of

    productivity. Slogans do not build quality systems.

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    11.Eliminate quotas and numerical targets

    Eliminate management by objective. Management must learn the capabilities of the

    process & how to improve them.

    Quotas and goals (such as schedule) address numbers - not quality and methods.

    Replace numerical targets & focus on continuous improvement & customer satisfaction

    No are important but not arbitrary.

    12.Remove barriers that prevent employees having pride in the work that they perform

    Loss of pride in workmanship exists throughout organization because

    Workers do not know how to relate to the organization mission

    They are blamed for system problems

    Poor design leads to production junk

    Inadequate training

    Inadequate or ineffective equipment is provided for performing the required work

    Eliminate physical & mental obstacles such that morale of the employee improves.

    Without pride there is no joy in work

    13.Encourage education and self-improvement for everyone

    Encourage continual training to keep up with new developments, changes in product

    design& machinery & innovative techniques.

    Educating gives employees a sense of security.

    Also Companies gain because of less brain-drain, & less waste of effort

    14.Publish top managements permanent commitment to continuous improvement of quality and


    Mgmt has to accept primary responsibility for never ending improvement

    Has to create a corporate structure to implement the philosophy

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    PDCA cycle

    The basic Plan-Do-Study-Act( PDSA) cycle was first developed by Shewhart & then modified by


    It is an effective quality improvement technique & problem solving method.

    The four steps in the cycle are exactly as stated.

    First , plan carefully what is to be done.

    Second carry out the plan ( do it)

    Third check the result- did the plan work as intended or any variations are there

    Finally act on the results by identifying what worked as planned & what didnt

    Develop an improved plan & repeat the cycle.

    PDCA is considered as a foundation in Toyota production system.


    Identify & prioritize opportunities for improvement


    Based on the importance

    Will problem solution contribute to the attainment of goals

    Can the problem be defined clearly using objective measure.

    Analyze the process

    Understand the current process

    Define process boundaries, customers, suppliers, process flow

    Determine levels of customer satisfaction , gather data & identify root causes.

    Develop the optimal solution(s)

    Create new processes

    Combine diff processes

    Modify the existing process

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    Do implement the change

    Prepare the implementation plan, obtain approval & implement the process

    Implementation plan describe

    Why will it be done

    How will it be done

    When will it be done

    Who will do it

    Where will it be done

    Check study the results

    Studying the effectiveness of the improvement efforts through data collection & review

    of the progress

    See if any unforeseen problems have developed

    If not satisfied then some of the process.

    Act standardize the solution

    institutionalize the process through certification

    Provide cross training

    Plan for the future

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    WEDeming PDCACycle

    Quality Control Circles

    Support structure consist of

    Steering committee of top management

    Provide guideline, suggest problems, receive recommendations, & follow up



    One for several circles

    They provide training for the leaders & support the training programmers for the


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    Circle leaders

    Often an area supervisor

    Help training the members in problem identification & solution methods, & preparing

    an effective presentation to Mgmt.

    Circle members

    Typical circle has 6 to 10 members

    Volunteers from the regular work force

    Given one hour of company time weekly to carry out discussion

    Trained in techniques of brain-storming & identifying causes

    Based on preliminary findings, the group focuses on a problem & work out a solution &

    a strategy to implement

    There are more than 170000 registered QCC with JUSE( union of Japanese scientist & engineers)

    Estimated that there are at least 3 mn workers in Japan involved in QC

    QC activities are interconnected in a nation wide network

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    The 7 QC Tools

    There are 7 basic tools available to assist the operations manager in the improvement process.

    These tools help identify and quantify the opportunities for improvement. They include:

    Check sheets


    Scatter diagrams


    Pareto Analysis


    Cause and effect diagrams

    The QC New 7 Tools

    (1) Affinity Diagram

    (2) Relations Diagram

    (3) Tree Diagram

    (4) Matrix Diagram

    (5) Arrow Diagram

    (6) Process Decision Program Chart (PDPC)

    (7) Matrix Data Analysis Method

    Check sheet

    A check sheet is a simple tool for recording the reasons a process maynot be performing

    as expected.

    It is a simple observational method which organizes and determines the frequency of


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    Some uses

    It Distinguishes b/w fact & opinion

    It gathers data about how often problem occurs

    It gathers data about the type of the problem that occurs.


    A histogram is a simple graphical tool which can be used to identify the frequency of a cause of


    The histogram is the result of the process of identifying types of variation observed.

    Helps to prioritize the causes.

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    Scatter Diagram

    Scatter diagram are graphical tools that attempt to depict the influence that one variable has on

    the others.

    Helps us to find out whether there is a correlation between the variables.

    Often used to find the causes of problems.

    E.g. cutting speed & tool life, training & errors.

    Process Flow Diagram

    Process mapping to identify the sequence of activities or flow of materials/ information in a


    Flow diagram make it easy to visualize the entire system, identify potential trouble spots, &

    locate control activities.

    Basically answer the question, who is the next customer.

    Pareto Charts

    Developed by Mr. Alfredo Pareto ( 1848- 1923) for studying unequal distribution of


    Later adapted by Dr. Joseph Juran. On the phrases vital few & Useful many.

    They are actually histograms aided by the 80/20 rule

    80% of the problems are created by approximately 20% of the causes.

    Pareto Diagram is a graph that ranks data classification in descending order from left to


    Pareto charts are used to identify and prioritize problems to be solved.

    Cause & Effect Diagram

    Developed by Dr. Kaoru Ishikawa in 1943

    Represent chain of relationships; often called asfishbone diagram.

    C&E diagram is a picture composed of lines & symbols designed to represent a meaningful

    relationship b/w an effect & its causes.

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    Need for New Tools

    The focus is on the managers

    The new techniques are mainly qualitative with the purpose of organize large amt of data,

    create hypothesis, clarify interrelationship & establish priorities.

    This techniques were first presented as a collection In 1979, the Union of Japanese Scientists

    and Engineers (JUSE).

    Work in conjunction with original Basic Seven Tools

    Used together increases TQM effectiveness

    Affinity diagram (or) Affinity Chart (or) K-J method

    It was created in the 1960s by Japanese anthropologist Jiro Kawakita.

    organizes a large number of ideas into groups based on their natural relationships

    This method taps a teams creativity and intuition.

    Efficient & creative way to gather & organize large amount of qualitative data and to find


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    Six Sigma

    SixSigma is a business improvement approach that seeks to find and eliminate causes of defects

    and errors in manufacturing and service processes by focusing on outputs that are critical to

    customers and results in a clear financial return for the organization.

    Used by companies including Motorola, Allied Signal, Texas Instruments, and General Electric.


    It defects any mistakes or errors that are passed on to the customer(many people also use the term


    Defects per unit (DPU)=Number of defects discove

    Number of units processed

    The Six Sigma concept characterizes quality performance by defects per million opportunities

    (dpmo), computed as DPU v 1,000,000 opportunities for error (or, as is often used in services,

    errors per million opportunities epmo).

    If the average number of bags per customer is 1.6, and the airline recorded 3 lost bags for 8,000

    passengers in one month (note: 12,800 opportunities for error in one month), then

    A DPU measure might be lost bags per customer. However, customers may have different

    numbers of bags; thus the number of opportunities for error is the average number of bags per


    epmo = (3/8,000 DPU) v 1,000,000/1.6 = 234.375

    1. Define: identify customers and their priorities; identify and define a suitable project; identify

    CTQs (critical to quality characteristics).

    2. Measure: determine how to measure the process and how it is performing; identify key internal

    processes that influence CTQs and measure current defects.

    3.Analyze: determine likely causes of defects and understand why defects are generated by identifying

    key variables that cause process variation.

    4.Improve: identify means to remove causes of defects; confirm key variables; modify the process to

    stay within acceptable range.

    5.Control: determine how to maintain improvements; put tools in place to ensure that key variables

    remain within acceptable ranges under the modified process.

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    Demings Prize

    Establish in 1950 originally for Japanese companies for major advances in quality improvement

    Demings Prize is given under Japanese Union of Scientists & Engineers

    These days Demings Prize is awarded to non Japanese companies and even individuals

    2001 Sundram Brake Linings, the worlds first friction material company to win

    2008 Tata Steel is the first integrated steel plant in Asia to win

    Awarded by the Union of Japanese Scientists and Engineers

    Recognizes companies that have demonstrated successful quality improvement programs

    All (not just Japanese) firms are eligible

    Four top-management activities recognized

    Senior management activities

    Customer satisfaction activity

    Employee involvement activities

    Training activity

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    Malcolm Baldrige National Quality Award

    MBNQA is given by United States National Institute of Standards and Technology

    Original stated purpose of the award were

    promote quality awareness

    recognise quality achievements of the US companies

    publicise successful quality strategies

    Current award criteria are stated

    To help improve organizational performance practices, capabilities and results

    To facilitate communication and sharing of the best practice information among US

    organizations of all types

    To serve as a working tool for understanding and managing performance and for

    guiding planning and opportunities for learning

    The categories are


    Strategic Planning

    Customer & Market Focus

    Measurement, Analysis and Knowledge Management

    Workforce Focus

    Process Management


    The Malcom Baldridge Award - The Malcolm Baldrige NationalQuality

    Award is the centerpiece of the Baldrige National Quality Program. This award, which since 1988

    has been presented annually by the President to recognize performance excellence, focuses on

    an organization's overall performance management system. It does not certifyproductor

    service quality.

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    Categories For The Baldridge Award

    Business: Manufacturing companies or subsidiaries that produce andsell manufactured

    products or manufacturing processes or produce agricultural, mining, or construction products.



    Characteristics OfABaldridgeWinner

    The major characteristics of a Malcolm Baldridge Winner are companies/organizations who


    formulated a vision of what they thought quality is and how they would achieve it.

    senior management involvement

    carefully planned and organized their quality effort to be sure it would be effectively


    vigorously controlled the overall process.

    The Criteria include leadership, strategic planning, customer & market focus, information &

    analysis, human resource development & management, process management and business


    Leadership - The organizations leadership system and senior leaders personal leadership

    StrategicPlanning - Howthe organization sets strategic directions and how it develops the

    critical strategies and action plans

    Customer and MarketFocus - Howthe companydetermines requirements, expectations, and

    preferences of customers and markets

    Information and Analysis - The selection, management, andeffectiveness of use of information

    and data to support key company processes and action plans, and the companys performance

    management system

    Human Resource Focus - Howthe companyenables employees to develop and utilize their full

    potential, aligned with the companys objectives

    Process Management - Howkeyprocesses are designed, implemented, managed, and


    Business Results - The organizations performance and improvementin key business areas

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    The Deming Prize - The Union of Japanese Scientists and

    Engineers (JUSE) invited Dr. Deming to Japan in July1950.He held a series of lectures and

    seminars during which he taught the basic principles of statistical quality control to executives,

    managers and engineers of Japanese industries. His teachings made a deep impression on the

    participants' minds and provided great impetus in implementing quality control in Japan.

    In appreciation, JUSE created a prize to commemorateDr.Deming's contribution and

    friendship and to promote the continued development of quality control in Japan. The prize was

    established in 1950 and annual awards are still given each year.

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    Quality Certifications

    ISO - InternationalOrganization forStandardization - purpose is to promote worldwide

    standards that will improve operating efficiency, improve productivity, and reduce costs

    Truly international in scope

    Certification required by many foreign firms

    ISO 9000 series - qualitymanagement and assurance

    ISO 9001 ~ Suppliers and Designers

    ISO 9002 ~ Production

    ISO 9003 ~ Inspection and Test

    ISO 9004 ~ Quality Management

    ISO 14000 - environmentalperformance