total quality quality

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Total Quality

Management



Introduction

� 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:

perfection

delighting or pleasing the customer

eliminating waste

doing it right the first time

Consistency

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

± Juran

� 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.



What is Quality

� FEIGENBAUM (1983) DEFINED QUALITY AS FOLLOWS

± 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)

defined

± 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



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



Two Aspects of Quality

� Quality of design measures how closely the characteristics of products or services meet the

needs and wants of customers.

� C onformance 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



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

�

Ex

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

± Include

� Scrap and rework costs

� Cost of corrective action

� Down time

� Material/ product losses



� External Failure Cost

± Occur when poor products reach customer

± Include

� Costs of customer complaints and returns

� Product recall costs

� Warranty claims costs

� Product liability costs

� penalties



Evolution of Quality Management

� Mass Inspection

± Inspecting

± Sorting

± Grading

± Rectifying

± Rejecting

� 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

� R&D

� Design

� Engineering



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

conditions.

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.



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.



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

obsolete.

± 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.



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

product.

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.



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

improvement

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

arise.

± 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.



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

productivity

±

Mgmt has to accept primary responsibility for never ending improvement

± Has to create a corporate structure to implement the philosophy



PDCA cycle

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

Deming.

� 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.

� Plan

± Identify & prioritize opportunities for improvement

± Prioritize

� 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

�



� 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



W E Deming PDCA Cycle

Quality Control Circles

� Support structure consist of

� Steering committee of top management

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

implementation

� Facilitators

± One for several circles

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

members



� 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



The 7 Q C 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

± Flow charts

± Scatter diagrams

± H ist ograms

± P aret o Analy sis

± C ontr ol Charts

± Cause and effect diagrams

The Q C 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 may not be performing

as expected.

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

reasons.



� 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.

Histogram

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

variation.

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

� Helps to prioritize the causes.



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

process.

� 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

wealth

� 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

right.

� 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 as fishbone diagram.

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

relationship b/w an effect & its causes.



.



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

solutions.



Six Sigma

� Six Sigma 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.

Defects

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

nonconformance).

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

customer.

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.



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



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

± Leadership

± Strategic Planning

± Customer & Market Focus

± Measurement, Analysis and Knowledge Management

± Workforce Focus

± Process Management

± Results

� T he Mal c om Bal dridge Aw ard - T he Mal c ol m Bal drige Nati onal Qual it y

� 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. I t d oes not certif y pr oduct or

service qual it y.



� Categories For The Baldridge Award

� Business: Manufacturing c ompanies or subsidiaries that pr oduce and sell manufactured

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

� H eal thcare:

� E ducati on:

� Characteristics Of A BaldridgeWinner

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

have:

� 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

initiated.

� vigorously controlled the overall process.

� The Criteria inc l ude l eadership, strategic pl anning, cust omer & market f ocus, inf ormati on &

analy sis, human resource develo pment & management, pr ocess management and business

resul ts.

� Leadership - T he organizati ons l eadership sy stem and senior leaders personal leadership

� Strategic P l anning - H ow the organizati on sets strategic directions and how it develops the

critical strategies and action plans

� Cust omer and Market Focus - H ow the c ompany determines requirements, expectations, and

preferences of customers and markets

� I nf ormati on and Analy sis - T he sel ecti on, management, and effectiveness of use of information

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

management system

� H uman Resource Focus - H ow the c ompany enabl es employees to develop and utilize their full

potential, aligned with the companys objectives

� P r ocess Management - H ow key pr ocesses are designed, implemented, managed, and

improved

� Business Resul ts - T he organizati ons perf ormance and impr ovement in key business areas



� T he Deming P rize - T he Uni on o f Japanese Scientists and

� E ngineers (JU SE) invited Dr . Deming t o Japan in July 1950 . H e hel d 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.



Quality Certifications

� ISO - I nternati onal Organizati on f or Standardizati on - purpose is t o 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 - qual it y management and assurance

± ISO 9001 ~ Suppliers and Designers

± ISO 9002 ~ Production

± ISO 9003 ~ Inspection and Test

±

ISO 9004 ~ Quality Management

� ISO 14000 - envir onmental perf ormance

total quality quality

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