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Total Quality

Management

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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.

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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

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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

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

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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

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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

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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

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.

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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

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.

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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

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.

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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

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.

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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

productivity

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

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

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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

implementation

Facilitators

One for several circles

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

members

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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

Flowcharts

Scatter diagrams

Histograms

Pareto Analysis

ControlCharts

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

reasons.

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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.

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.

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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

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 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

solutions.

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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.

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.

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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

Leadership

Strategic Planning

Customer & Market Focus

Measurement, Analysis and Knowledge Management

Workforce Focus

Process Management

Results

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.

Healthcare:

Education:

Characteristics OfABaldridgeWinner

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

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

results.

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

improved

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