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KLNCIT Introduction UNIT – I INTRODUCTION 1.1 DEFINITION FOR TQM Total Made up of the whole Quality Degree of excellence a product of service provides Management Act, art of manner of handling, controlling, directing etc Therefore TQM is the art of managing the whole to achieve excellence. The golden rule is simple but effective way to explain it: Do unto as you would have them do unto you. TQM is defined as both a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization. It is the application of quantitative methods and human resources to improve all the processes within an organization and exceed customer needs now and in the future. TQM integrates fundamental management techniques, existing improvement efforts, and technical tools under a disciplined approach. 1.2 DEFINITION OF QUALITY When the expression ‘quality’ is used, it will be think in terms of an excellent product or service that fulfills or exceeds our expectations. These expectations are based on the intended use and the selling price. Quality can be quantified as follows: Q = P/E Where q = quality P = performance E = expectations. If Q is greater than 1.0, then the customer has a good feeling about the product or Service. DEFINITION OF QUALITY GIVEN IN ISO 9000:2000 It is defined as the degree to which a set of inherent characters fulfills requirements. Degree means that quality can be used with adjectives such as poor, good and excellent. Inherent is defined as existing in something, especially as permanent characters. Characters can be quantitative or qualitative. 1

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KLNCIT Introduction

UNIT – IINTRODUCTION

1.1 DEFINITION FOR TQM Total Made up of the whole

Quality Degree of excellence a product of service providesManagement Act, art of manner of handling, controlling, directing etc

Therefore TQM is the art of managing the whole to achieve excellence. The golden rule is simple but effective way to explain it: Do unto as you would have

them do unto you. TQM is defined as both a philosophy and a set of guiding principles that represent the

foundation of a continuously improving organization. It is the application of quantitative methods and human resources to improve all the

processes within an organization and exceed customer needs now and in the future. TQM integrates fundamental management techniques, existing improvement efforts,

and technical tools under a disciplined approach.

1.2 DEFINITION OF QUALITY When the expression ‘quality’ is used, it will be think in terms of an excellent product

or service that fulfills or exceeds our expectations. These expectations are based on the intended use and the selling price.

Quality can be quantified as follows:Q = P/E

Where q = qualityP = performanceE = expectations.

If Q is greater than 1.0, then the customer has a good feeling about the product or Service.

DEFINITION OF QUALITY GIVEN IN ISO 9000:2000 It is defined as the degree to which a set of inherent characters fulfills requirements. Degree means that quality can be used with adjectives such as poor, good and

excellent. Inherent is defined as existing in something, especially as permanent characters. Characters can be quantitative or qualitative. Requirement is a need or expectation that is stated; generally implied by the

organization, its customers, and other interested parties; or obligatory.1.3 DIMENSION OF QUALITY Quality has nine dimensions. These are independent, therefore, a product can be excellent; therefore, a product and average or poor in another. Very few, if any,. Products excel ion all nine dimensions. For example, Japanese were cited for high-quality cars in 1970’s based only on the dimensions of reliability, conformance and aesthetes. Quality products can be determined by using a few of the dimensions of quality. Marketing has the responsibility of identifying the relative importance of each dimension of quality. These dimensions are then translated into the requirements for the development of a few new product or the improvement of an exiting one.

S.No Dimension Meaning and example [sliding project]1. Performance Primary product characteristics, such as brightness of the

picture.2. Features Secondary characteristics. Added features, such as

remote control.3. Conformance Meeting specifications Or industry standards. Work man

ship4. Reliability Consisting if performance overtime, average time, for the

unit to fail5. Durability Useful life, includes repair

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6. Service Resolution of problems and complaints, case of repair7. Response Human – to human interface, such as the courtesy of the

dealer.8. Aesthetics Sensory characters, such as exterior finish9 Reputation Past performance and other intangibles, such as being

ranked first.1.4 QUALITY PLANNING The planning component begins with external customers. Once quality goals are established, marketing determines the external customers, and all organizational personal (managers, members of multi functional teams, or work groups) determine the interval customers. External customers may be quite numerous, as is the case of a bank supply organization, where they include tellers, financial planners, loan officers, auditors, managers and bank’s customers. Once the customers are determined, their needs are discovered. This activity requires the customers to state needs in their own words and from their own viewpoint; how ever real needs may differ from stated needs. For example, a stated need may be an automobile, where as the real need is transportation or a status symbol. In additional, internal customers may not wish to voice real needs out of fear of the consequences. One might discover these needs by

o Being a user of the product or service.o Communicating with customers through product or service satisfaction and

dissatisfaction informationo Simulation in the laboratory.

Because, customer needs, are stated from their view point, they should be translated to requirements that are understandable to the organization and its suppliers. The next step in the planning process is to develop product or service features that respond to customer needs, meet the needs of the organization and its suppliers, are competitive, and optimize the cost of all stakeholders. This step typically is performed by a multifunctional. Quality function deployment, Taguchi’s quality engineering, and quality by design are some of the approaches Quality function deployment, Taguchi’s quality engineering, and quality by design are some of the approaches that can be used. It is important that the design team, rather than a single department, approve the final design and that the team be composed and suppliers as well as customers and suppliers. The fourth step is to develop the processes able to product and or service features. Some of this planning would have occurred during the previous step. This step is also performed by a multifunctional team with a liaison to the design team. Activities include determining the necessary facilities, training, and operation, control and maintenance of the facilities. Of particulars concern will be the scaling up from the laboratory or prototype environment to the real process environment. Additional activities include process capability evaluation and process control type and location. Transferring plans to operations is the final step of the planning process. Once, again, a multifunctional team with a liaison to the other teas is used. When training is necessary, it should be performed by members of the process planning team. Process validation is necessary to ensure, with a high degree of assurance, that a process will consistently produce a product or service meeting requirements.

1.5 QUALITY COSTS

The value of quality must be based in its ability to contribute to profits. The goal of most organizations is to make money, therefore decisions are made based on valuating alternatives and the effect each alternative will have on the expense and income of the entity. The efficiency of a business is measured in terms of dollars. The cost of poor quality can add to the other costs used in decision making, such as maintenance, production, design, inspection, sales and other activities. This cost is no different than other costs. It can be programmed, budgeted, measured, and analyzed to help in attaining the objectives for better at less cost. A reduction in quality cost leads to used profit. Quality costs cross department lines by involving all activities of the organization marketing, purchasing, design, manufacturing, and service, to name a few. Some costs, such as inspector salaries and rework, are readily identifiable; other costs, such as prevention costs associated with

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marketing, design, and purchasing are more difficult to identify and allocate. There are failures costs associated with low sales and customer good will, which may be impossible to measure and must be estimated. Quality costs are defined as those costs associated with the non achievement of product or service quality as defined by the requirements Established by the organization and it contracts with customers and society. Simply stated, quality cost is the cost of poor products or services.

MANAGEMENT TECHNIQUES

Quality costs are used by mgmt in its pursuit of quality improvement, customer’s satisfaction, market share, and profit enhancement. It is the economic common denominator that forms the basic data for TQM. When quality costs are too high, it is a sign of management in effectiveness, which can affect the organization’s competitive position. A quality cost program provides warnings against on coming, dangerous financial situations.

1.5.1 CATEGORIES AND ELEMENTS

1.5.1.1 Preventive cost category The experience gained from the identification and elimination of specific causes of failure and their costs is utilized to prevent the recurrence of the same for similar failure in other products or services. Prevention is achieved by examining the total of such experience and developing specific activities for incorporation into the basic management, system that will make it difficult or impossible for the same errors or failures to occur again. The prevention costs of poor quality have been defined to include the cost of all activities specifically designed for this purpose. Each activity may involve personnel from one or many department. No attempt is made to define appropriate departments, because each organization is structured differently.1. Marketing / Customer / user

Cost are incurred in the accumulation and continued evaluation of customer and user quality needs and perceptions (including feedback on reliability and performance) affecting user satisfaction with the organization’s product or service sub elements are marketing research, customer and user – perception surveys or focus groups, and contract and document review.2. Product / Service / Design Development

Costs are incurred to translate customer and user needs into reliable quality standards and requirements and to manage the quality of new product or service developments prior to the release of authorized documentation for initial production. These costs are normally planned and budgeted and are applied to major design changes as well. Sub elements are design quality progress review, design support activities, product design qualification tests, service design qualification, and field trials.3. Purchasing

Costs are incurred to assure conformance to requirements of supplier parts, materials or processes and to minimize the impact of supplier non conformances of the quality of delivered produce or services. This area involves activities prior to and after finalization of purchase order commitments. Sub-elements are supplier reviews, supplier rating, purchase order technical data reviews, and supplier quality planning.

4. Operations (Manufacturing or service)Costs are incurred in assuring the capability and readiness of operations to meet

quality standards and requirements. Quality control planning for all production activities, and the quality education of operating personnel. Sub elements are operation process validation. Operations quality planning, design and development of collecting quality costs, operations support quality planning, and operator quality education.5. Quality Administration

Costs are incurred in the overall administrator of the quality management function sub-elements are administrative salaries, administrative expenses, quality program planning,

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quality performance reporting, quality education, quality improvement, documenting and evaluating quality costs and quality audits.

1.5.1.2 Appraisal Cost Category

The first responsibility of a quality management system is assurance of the acceptability of product or service as delivered to customers. This category has the responsibility for evaluating a product or service at sequential stages, from design to first delivery and throughout the production process, to determine its acceptability for continuation in the production or life cycle. The frequency and spacing of these evaluations are based ion a trade-off between the cost benefits of early discovery non conformance and the cost of the evaluations themselves. Unless perfect control can be achieved, some appraisal cost will always exist. An organization would never want the customer to be the only inspector. Thus the appraisal costs of poor quality have been defined to include all costs incurred in the planned conduct of product or service appraisals to determine compliance to requirements.

1. Purchasing Appraisal Costs It can generally be considered the costs incurred for the inspection and / or test of purchased supplies or service to determine acceptability for use. These activities can be performed as part of a receiving inspection function or as source inspection at the supplier is facility. Sub elements are receiving or incoming inspection and tests, measurement equipments, qualification of supplier product, and source inspection and control programs.

2. Operations (Manufacturing or service) Appraisal Costs It generally considered the costs incurred for the inspections, tests audits

required to determine and assure the acceptability of product or service to continue into each discrete step in the operations plans from start of production to delivers. In each case where materials losses are an integral part of the appraisal operation such as machine setup pieces or destructive testing, the cost of the losses is to be included. Sub elements are planned operations, inspections, tests, audit, setup inspections and tests, special tests(manufacturing), process control measurements, laboratory support, measurement (inspection and test) equipment, and outside endorsements and certifications.

3. External Appraisal Costs These are incurred any time there is need for field setup or installation and checkout prior to official acceptance by the customer and also when there is need for field trials of new products or services. Sub elements are field performance evaluations, special product evaluations, and evaluations of field stock and spare parts.

4. Review of Test and Inspection DataCosts are incurred for regular reviewing inspection and test data prior to release of the

product for shipment, to determine whether product requirements have been met.

5. Miscellaneous Quality EvaluationsThis area involves the cost of all support area quality evaluations to provide

acceptable support to the production process. Examples of areas included are mail rooms, storerooms, and packing and shipping.

1.5.1.3 Internal Failure Cost Category Whenever quality appraisals are performed, the possibility exists for discovery of a failure to meet requirements. When this happens, unscheduled and possibly unbudgeted expenses are automatically incurred. For example, when a complete lot of metal parts are rejected for being oversize, the possibility for rework must be evaluated first. Then the cost of rework may be compared to the cost of scrapping the parts and completely replacing them.

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Finally, a disposition is made, and the action is carried out. The total cost of this evaluation, disposition, and subsequent action is an integral part of internal failure costs. In attempting to cover all possibilities for failure to meet requirements within the internal products or service life cycle, failure costs have been defined to include basically all costs required to evaluate, dispose of and either correct or replace nonconforming products or services prior to delivery to the customer, as well as the cost to correct or replace incorrect or incomplete product or service description. In general, this includes all the material and labor expenses that are lost or wasted due to non-conforming or otherwise unacceptable work affecting the quality of end products or service. Corrective action that is directed toward elimination of the problem in the future may be classified as prevention.

1. Product or service Design Failure Costs(Internal) Design failure costs can generally be considered the unplanned costs that re incurred because of inherent design in adequacy in released documentation for production operations. They do not include billable costs associated with customer-directed changes (product improvements) or major redesign efforts (product upgrading) that are part of an organization-sponsored marketing plan. Sub-elements are design corrective action, rework due to design changes scrap due to design changes, and production illusion costs.

2. Purchasing Failure costs Costs are incurred due to purchased item rejects. Sub-elements are purchased materials reject disposition costs, purchased material replacement costs, supplier corrective action, rework to supplier rejects, and uncontrolled materials losses.

3. Operations (Production or Service) Failure Costs Operations failure costs almost always represent a significant portion of overall quality costs and generally be viewed as the costs associated with non -conforming product or service discovered during the operations process. They are categories into three distinct areas; material review and corrective action costs, operations rework and repair cost and internal failure labor losses.

1.5.1.4 External Failure Cost Category

This category includes all costs incurred due to actual or suspected nonconforming product or service after delivery to the customer. These costs consist primarily of costs associated with the product or service not meeting customer or user requirements. The responsibility for these losses may lie in marketing or sales, design development or operations. Determination of responsibility is not part of the system. Determination of responsibility can come about only through investigation and analysis of external failure cost inputs.

1. Complaint Investigations of Customers or user ServiceThis category includes the total cost of investigating, resolving, and responding to

individual customer or user complaints or inquires, including necessary field service.

2. Returned GoodsThis includes the total cost of evaluating and repairing or replacing goods not meeting

acceptance by the customer or user due to quality problems. It does not include repairs accomplished as part of a maintenance or modification.

3. Retrofit and Recall CostThese 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 deficient they include only the portion of retrofits that are due to quality problems.

4. Warranty Claims

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Warranty costs include the total cost 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 a food or chemical service accident. In cases where a price reduction should be wanted.

5. Liability CostsThese are organization – paid costs due to liability claims, including the cost of product

or service liability insurance.

6. PenaltiesPenalty costs are those costs incurred because less than full products or service

performance is achieved as required by contracts with customers or by government rules and regulations.

7. Customer or user GoodwillThis category involves costs incurred, over and above normal selling costs, to customers

or users who are not completely satisfied with the quality of delivered product or service because the customer’s quality expectations were greater than the quality they received.

8. Lost SalesLost sales comprise the value of the contribution to profit that is lost due to sales

reduction because of quality problems.

1.5.2 COLLECTION AND REPORTING

The development of the collection system requires the close interaction of the quality and accounting departments. Because accounting cost data are established by departmental cost codes, a significant amount of quality cost can be option obtained from this source. In fact, the system should be designed using the organizations present system and modifying it where appropriate. Some existing sources for reporting quality costs are timesheets, schedules minutes of meetings, expenses reports, credit and debit memos, and so forth be aware that not all accounting data are accurate. Some quality cost data cross departmental lines, and these types of costs are the most difficult to collect. Special forms may be required to report some quality costs, for example scrap and rework cost may require analysis by quality control personnel to determine the cause and the departmental responsible. In some cases, estimates are used to allocate the proportion of an activity that must be charged to a particular element. For examples, when the marketing department supervisor to estimate the proportion of the activity that pertains to customer quality needs and should be charged as a quality cost. Work sampling techniques can be valuable tool for assisting the supervisor in making the estimate. The comptroller’s office must be directly involved on the design of the quality cost collection system. An ideal system would be one where the quality cost is the difference between actual revenues and revenues if there were no unhappy customers. This ideal is most likely impossible to obtain. Allocating the costs to the proper element is difficult. Some example situations are

o Incoming inspection would be appraisal, whereas supplier certification would be prevention.

o An 800 number would be prorated between the cost of doing business and customer complaints.

o Cost of a team meeting might be due to failure, but cost of the solution might be appraisal or prevention.

Quality costs should be collected by product line, projects, departments, operators’ nonconformity classification, and work centers. This manner of collection is sufficient for subsequent quality cost analysis. Procedures are developed to ensure that the system functions correctly. Micro reports are done for the TQM function.

1.5.2.1 QUALITY COSTS BASES

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Quality costs by themselves present insufficient information for analysis. A baseline is required that will relate quality costs to some aspect of the business that is sensitive to change. Typical bases are labor, production, sales and unit. When these baselines are compared with quality costs, an index is obtained.

Labor Quality cost per hour of direct labor is a common index. Direct labor information is readily available because it is used for other indexes. Automation affects the base over an extended period of time; therefore, the value of a labor base is limited to comparisons within a short period of time. Sometimes direct labor dollars are used rather than direct labor hours. This technique eliminated the inflation factor because dollars are divided by dollars.

Production

A quality cost per dollars of production cost is another common index. Production is composed of direct labor, direct material, and overhead. Production cost information is readily available, because it is used for other indexes. Because there are three costs involved, this index is not significantly affected by material price fluctuations or by automation. Design cost, marketing cost or purchasing cost might be appropriate in some situations as a substitute for production.

Sales Quality cost per dollar of the net sales is the most common type of index. This

information is valuable tool for higher management decision making. Because sales lag behind production and are frequently subject to seasonal variations, this index is sometimes a poor one for short – team analysis. It is also affected by changes in selling price and shifts in available markets. However, in the eyes of senior management, there may be no better common denominator than net sales for year-to-year planning and measurement.

Unit Quality cost per unit, such as number of boxes, kilograms of aluminum, or meters of cloth, is an excellent index where product lines are similar. However, where product lines are dissimilar, comparisons are difficult make and interpret. Because each of the various indexes has disadvantages, it is the normal practice to use three indexes. From experience, the most useful indexes are used to compare trends in quality costs. For current, ongoing applications, various ratios can be used. These ratios will reflect management emphasis on areas that are undergoing quality improvement.Typical ratios that may be considered are.

o Operations failure costs as a percent of production costs.o Purchasing quality costs as a percent of materials costs.o Design quality costs as a percent of design costs.

There is no limit to the no/. of ratios that can be used since there is no single perfect ratio, use of more than one ratio is recommended.

1.5.2.2 QUALITY COST REPORT

The basic quality cost control instrument is the quality cost report, which is usually issued by the accounting dept. Provision is made to report the quality costs for the current month for each perior year-to-date values. Applicable indexes and ratios are shown at the bottom of the report. By comparing current costs with historicalness, a certain amount of control can be exercised. It is also possible, to establish a budget of each cost element. By comparing actual quality costs with budgeted costs, favorable and unfavorable variances can be determined.

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Fig: 1.5.1 Quality Cost Summary Report

1.6 ANALYSIS TECHNIQUES FOR QUALITY COSTS Analysis techniques for quality costs are quite varied. The most common techniques are trend and praetor analysis. The objective of these techniques is to determine opportunities for quality improvement.

1.6.1 Trend Analysis It involves simply comparing present cost levels to past levels. It is suggested that atleast one year elapse before drawing any conclusions from the data. Trend analysis provides information for long range planning. It also provides information for the instigation and assessment of quality improvement programs. Data for trend analysis come from the monthly report and the detailed transactions that make up the elements. Trend analysis can be accomplished by cost category, by sub-category, by product, by measurement base, by plants within a corporation, by department, by work center, and by combinations thereof. The groups for some of these trend types. Time scales for these time-series graphs may be by month, queries, or year, depending in the purpose of the analysis.

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Fig: 1.6.1 By Cost Category

The above diagram shows that prevention and internal failure costs are increasing but approvals costs remain unchanged and external failure costs are decreasing.

Fig : 1.6.2: By IndexThe above graph shows the trend analysis for 3 different measurement bases. The differences in the trends of the three bases. Point to the need for more than one base. A use in percent of net sales during the fourth quarter is due to seasonal variation, where as the variation in production cost for the third quarter is due to excessive overtime costs.

Fig : 1.6. 3: By Product

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KLNCIT Introduction

The above graph shows the trend analysis for two different products. The figure shows that the costs for product B are better than those for product A. Infact, product B is showing a nice improvement, where as product A’s cost is increasing. An increase in prevention and appraisal cost will, it is hoped, improve the external and internal failure costs of product A. It is important to note that comparisons b/w products and plants should be made with extreme caution.

Fig : 1.6.4: With in a Category

The above graph is for the external failure category. Returned costs and lost sales cost have increased, where as costs for the other sub-categories have remained unchanged. In that figure, the index is by production costs and the time period is by quarters.

Fig : 1.6. 5: Typical Short-Run Trend Analysis Graph

The ratio of rework costs to total assembly costs in percent is plotted months. This ratio is compared to quality measure, percent nonconforming. Both curves show a use, which supports the basic concept that quality improvement is synonymous with reduced costs. Trend analysis is an effective tool, provided it is recognized that some period-to-period fluctuations are chance variations. These variations are similar to those that occur on control charts. The important to note that there may be a time lag b/w the occurrence of a cost and the actual reporting of that cost.

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1.6.2 Pareto Analysis

One of the most effective cost-analysis tools is the Pareto analysis. A typical pareto diagram for internal failures it shown below.

Fig : 1.6.6: Pareto AnalysisItems are located in descending order, beginning with the largest one on the left. A pareto diagram has few items that represent a substantial amount of the total. These items also located on the left of the diagram and are referred to as the vital fews. A pareto diagram can be established for quality cost by operator, by machine, by department, by product line, by non conformity, by category, by element, and so forth. Once the vital few are known, projects can be developed, to reduce their quality costs. In other words, money is spent to reduce the vital few quality costs; little or no money is spent on the useful many. The figure in below shows a pareto diagram by department. This pareto diagram is actually an analysis of one of the vital few elements (operations-scrap) in the pareto diagram for the internal

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failure category. Based one are diagram, department D would be an excellent candidate for a quality improvement program.

1.6.3 Optimizing Costs

In Analyzing quality costs, management wants to know the optimum costs. This information is difficult to specify. One technique is to make comparisons with other organizations. More and more organizations use net sales as an index, which makes comparison what easier. Difficulties arise; however, because many organizations keep their costs secret. Also, accounting systems treat the collection of costs differently. For example, overhead costs may or may not be included in a particular cost element. There are many variations in types of manufacturing and service organizations that cause quality costs to vary appreciably. Where complex, highly reliable products are involved, quality costs may be as high as 20% of sales; in industries that produce simple products with low tolerance requirements quality costs may be less than 5% sales. Another technique is to optimize the individual categories. Failure costs are optimized when there are no indefinable and profitable projects for reducing them. Appraisals costs are also optimized when there are no identifiable and profitable projects for reducing them. Prevention costs are optimized when most of the dollar cost is used for improvement projects, when the prevention work itself has been analyzed for improvement, and when non project prevention work is controlled by sound budgeting. A third technique for determining the optimum is to analyze the relationship among the cost categories. As the quality of conformance improves and approached 100% failure Cost are reduced until they theoretically approach zero. In other words, if the product or service is perfect, there are no failure costs. To achieve a reduction in failure costs, it is necessary to appraisal and prevention costs. Combining the two curves gives the total quality cost curve. The model shows that as quality increases and quality cost decreases. In this model, the upper two curves turn upward, and their costs go to infinity rather than converge, as shown by the dashed lines.

Quality of conformance -%

Fig: 1.6.7 Optimum Quality Cost Concept

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1.7 BASIC CONCEPTS OF TQM

1. A Committed and involved management to provide long-term top-to-bottom organizational support. Management must participate in the quality program. A quality council must be established to develop a clear vision, set long-term goals, and direct the program. Quality goals are included in the business plan. An annual quality improvement program is established and involves input from their entire work force. Managers participate on quality improvement teams and also act as coaches to other teams. TQM is a continual activity that must be entrenched in the culture it is not just a one shot program. TQM must be communicated to all people. 2. An unwavering focuses on the customer, both internally and externally. The key to an effective TQM program is its focus on the customer. An excellent place to start is by satisfying internal customers. We must listen to the voice of customer and emphasize design and defect prevention. Do it right the first time and every time, for customer satisfaction is the important consideration.

3. Effective involvement and utilization of the entire work force. TQM is an organization wide challenge that is everyone’s responsibility. All personal must be trained in TQM, statistical process control (SPC), and other appropriate quality improvement skills so they can effectively participate on project teams. Including internal customers and, for that matter, the internal supplier on project teams is an excellent approach. Those affected by the plan must be involved in its development and implementation. They understand the process better than anyone else. Changing behavior is the goal. People must come to work not only to do their jobs, but also that think about how to improve their jobs. People must be empowered at the lowest possible level to perform processes in an optimum manner.

4. Continuous improvement of the business and production process. There must be a continual striving to improve all business and production

processes. Quality improvement projects, such as on-time delivery, order entry efficiently, billing error rate, customer satisfaction, cycle time, scrap reduction and supplier management are good places to begin. Technical techniques such as SPC, benchmarking, QFD, ISO 9000, and designed experiments are excellent for problem solving.

5. Treating suppliers as partners. On the average 40% of the sales dollar is purchased product or service; therefore, the supplier quality must be out standing. A partnering relationship rather them an adversarial one must be developed. Both parties have as much to gain or lose based on the success or failure of the product or service. The focus should be on quality and life-cycle costs rather than price. Suppliers should be few in number so that true partnering can occur.

6. Establish performance measure for the processes. Performance measures such as uptime, percent nonconforming absenteeism, and customer satisfaction should be determined for each functional area. These measures should be posted for everyone to see. Quantitative data are necessary to measure the continuous quality improvement activity.

1.8 HISTORICAL REVIEW The history of quality control is undoubtedly as old as industry itself. During the Middle Ages, quality was to a large extent controlled by the long periods of training required by the guilds. This training instilled pride in workers for quality of a product.

The concept of specialization of labor was introduced during the Industrial Revolution. As a result, a worker no longer made the entire product, only a portion. This

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change brought about a decline in workmanship. Because most products manufactured during that early period were not complicated, quality was not greatly affected. In fact, because productivity improved there was a decrease in cost, which resulted in lower customer expectations. As products became more complicated and jobs more specialized, it became necessary to inspect products after manufacture.

In 1924, W. A. Shewhart of Bell Telephone Laboratories developed a statistical chart for the control of product variables. This chart is considered to be the beginning of statistical quality control. Later in the same decade, H. F. Dodge and H. G. Romig, both of Bell Telephone Laboratories, developed the area of acceptance sampling as a substitute for 100% inspection. Recognition of the value of statistical quality control became apparent by 1942. Unfortunately, U.S. managers failed to recognize its value.

In 1946, the American Society for Quality Control was formed. Recently, the name was changed to American Society for Quality (ASQ). T is organization, through its pub-lications, conferences, and training sessions, has promoted the use of quality for all types of production and service.

In 1950, W. Edwards Deming, who learned statistical quality control from Shewhart, gave a series of lectures on statistical methods to Japanese engineers and on quality re-sponsibility to the CEOs of the largest organizations in Japan. Joseph M. Juran made his first trip to Japan in 1954 and further emphasizes~ management's responsibility to achieve quality. Using these concepts. the Japanese set the quality standards for the rest of the world to follow.

In 1960, the first quality control circles were formed for the purpose of quality im-provement. Simple statistical techniques were learned and applied by Japanese workers.

By the late 1970s and early 1980s, U.S. managers were making frequent trips to Japan to learn about the Japanese miracle. These trips were really not necessary-they could have read the writings of Deming and Juran. Nevertheless, a quality renaissance began to occur in U.S. products and services, and by the middle of 1980 the concepts of TQM were being publicized.

In the late 1980s the automotive industry began to emphasize statistical process con-trol (SPC). Suppliers (l.od their suppliers were required to use these techniques. Other in-dustries and the Department of Defer.se also implemented SPC. The Malcolm Baldrige National Quality Award was established and became the means to measure TQM. Genechi Taguchi introduced his concepts of parameter and tolerance design and brought about a resurgence of design of experiments (DOE) as a valuable quality improvement tool.

Emphasis on quality continued in the auto industry in the 1990s when the Saturn au-tomobile ranked first in customer satisfaction (1996). In addition, ISO 9000 became the worldwide model for a quality management system. ISO 14000 was approved as the worldwide model for environmental management systems.

The new millennium brought about increased emphasis on worldwide quality and the Internet.

1.9 PRINCIPLES OF TQM The key principles of TQM are as following: Management Commitment

1. Plan (drive, direct) 2. Do (deploy, support, participate) 3. Check (review) 4. Act (recognize, communicate, revise)

Employee Empowerment 1. Training 2. Suggestion scheme 3. Measurement and recognition 4. Excellence teams

Fact Based Decision Making 1. SPC (statistical process control) 2. DOE,FMEA 3. The 7 statistical tools

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4. TOPS (Team Oriented Problem Solving) Continuous Process Improvement

1. Systematic measurement and focus on Quality 2. Improvement 3. Excellence teams 4. Cross-functional process management 5. Attain, maintain, improve standards

Customer Focus 1. Supplier partnership 2. Service relationship with internal customers 3. Never compromise on quality 4. Customer driven standards

Performance Measures 1. Quality (Graph, Control Chart, Process Capability) 2. Cost (Taguchi's Loss Function) 3. Flexibility 4. Reliability 5. Innovation

1.10 LEADER CONCEPTS In order to become successful, leadership requires an intuitive understanding of human nature the basic needs, wants and abilities of people to be effective, a leader understands that:

o People, paradoxically, need security and independence at the same time.o People are sensitive to external rewards and punishments and yet are also

strongly self-motivated.o People like to hear a kind word of praise. Catch people doing something right,

so we can pat them on the back.o People can process only a few facts at a time; thus, a leader needs to keep

things simple.o People trust their gut reaction moiré than statistical data.o People distrust a leader’s retort if the words are inconsistent with the leader’s

actions.Leaders need to give their employees independence and yet provide a secure working environment-one that encourages and rewards successes. A working environment must be provided that fosters employee creativity and risk-taking but not penalizing mistakes. A leader will focus on a few key values and objectives. Focusing on a few values or objectives gives the employees ability to discern on a daily basis what is important and what is not. Employees, upon understanding the objectives, must be given personal control over the task in order to make the task their own and, there by something to which may commit. A leader, by giving the employee a measure of control over an important task, will tap into the employee’s inner drive. Employees, led by the manager can become exited participants on the organization. TQM is not always enough to get employees to participate. People, follow a leader, not a cause. Indeed, when people like the leader but not the vision, they will try to change the vision or reconcile their vision to the leader’s vision. If the leader is liked, people will not look for another leader. This is especially evident in politics. If the leader is trusted and liked, then the employees will participate in TQM cause. Therefore, it is particularly important that a leader’s character and competence, which is developed by good rabbits and ethics, be above reproach. Effective leadership begins on the inside and moves out.

1.11 ROLE OF SENIOR MANAGEMENT

Everyone is responsible for quality, especially senior management and the CEO; however, only the latter can provide the leadership system to achieve results. For instance, in the 1980’s, general electronics’ CEO, jack Welch instituted leadership training – courses at all levels of the organization. The general electronic training courses taught provided the

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opportunity for teams to develop solutions to real business problems. Many of the solutions the teams developed were implemented. Jack Welch supported the development of a leadership system where by quality control leaders were developed at all levels in all functions of the organization, including research, marketing, manufacturing, sales, finance and human resources. Senior managers need to be provided with the skills to implement quality control techniques and actively participate in the quality council. Senior management has numerous responsibilities. Senior management must practice the philosophy of management by wandering should (MBWA). Management should get out of the office and visit customers, suppliers departments within the organizations, and plants within the organization. That way, managers learn what is happening with a particular customer, supplier, or project. MBWA can subordinates reduce paperwork. Encourage subordinates to write only important messages that need to be part of the permanent record. For example, Kinko’s executives perform normal operating duties for two or three days at one location. This approach is an excellent technique for gaining first hand information. The idea is to let employees think for themselves. Senior management’s role is no longer to make the final decision, but to make sure the team’s decision is aligned with the quality statement of the organization. Push problem solving and decision making to the lowest appropriate level by delegating authoring and responsibility. Senior managers must stay informed on the topic of quality improvement by reading books and articles, attending, seminars, and taking to other TQM leaders. The leader sends a strong message to subordinates when that leader asks if they have read a particular book or article. The needed resources must be provided to train employees in the TQM tools and techniques, the technical requirements of the job and safety. Resources in the form of the appropriate equipments to do the job must also be provided. Senior managers must find time to celebrate the success of their organizations quality efforts by personally participating in award and recognition ceremonies. This activity is an excellent opportunity to rein force the importance of the effort and to promote TQM. A phone call or handshake combined with a sincere thank you for a job well done is a powerful form of recognition and reward.

One of the duties of the quality council is to establish or revise the recognition and reward system. In particulars, senior management’s incentive compensation must include quality improvement performance. Also, previsions must be made to reward teams as well as creative individuals. Senior managers must be visibly and actively engaged in the quality effort by serving on teams, watching teams, and teaching seminars. They should lead by demonstrating, communicating, and reinforcing the quality statements. As a rule to thumb, they should spend about one-third or their time on quality. A very important role of senior managers is listening to internal and external customers and suppliers through visits, focus groups,. and surveys. This information is translated into core values and process improvement projects. Another very important role is communication. The objective is to create awareness of the importance of TQM and provide TQM results in an ongoing manner. The TQM message must be “sold” to personnel, for if they don’t buy it, TQM will never happen. In addition to internal efforts, there must be external activities with customers and suppliers the media, advertising in trade magazines and intersections with the quality community. By following the preceding suggestions senior mangers should be able to derive fear out of the organization, break down barriers, remove system road blocks, anticipate and minimize resistance to change, and to general, change the culture. Only with the involvement of senior management can TQM be a success.

1.12 QUALITY COUNCIL In order to build quality into the culture, a quality council is established to provide overall direction. It is the driver for the TQM engine. In a typical organization the council is composed of the CEO (Chief Executive Officer); the senior managers of the functional areas such as design, marketing, finance, production and quality; and a coordinate or consultant. If there is a union, consideration should be given to having a representative on the council. Some organizations, such as friendly ice cream of Wilbraham, MA include front-line representatives from every area. A coordinator is necessary to assume some of the added duties that a quality improvement activity requires. The individual selected for the

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coordinator’s position should be a bright young person with executive potential. That person will report to the CEO. The responsibilities of the co-coordinator is to build two-way trust, propose team needs to the council, share council expectations with the team, and brief the council on team progress. In addition, the co coordinator will ensure that the teams are empowered and know their responsibilities. The co-coordinator’s activities are to assist the team leaders, share lesson learned among teams, and have regular leader’s meetings. In smaller organization where managers may be responsible for more than one functional area, the number of members will be smaller. Also, a consultant could most likely be employed rather than a coordinator. In general, the duties of the quality council are to

o Develop, with input from all personnel, the core values, vision statement, mission statement, and quality policy statement.

o Develop the strategic long-term plan with goals and the annual quality improvement with objectives.

o Create the total education and training plan.o Determine and continually monitor the cost of poor quality.o Determine the performance measure for the organization, approve those for

the functional areas, and monitor them.o Continually determine those projects that improve the processes, particularly

those that affect external and internal customer satisfaction.o Establish multifunctional project and departmental or work group teams and

monitor their progress.o Establish or revise the recognition and reward system to account for the new

way of doing business.In large organizations, quality councils are also establishing at lower levels of the corporation. Their duties are similar but relate to that particular level in the organization. Initially these activities will require additional work by council member; however in the long term, their jobs will be easier. These councils are the instruments preserve from forgotten the idea of never-ending quality improvement. Once the TQM program is well established, a typical meeting agenda might have the following items;

o Progress report on teams.o Customer satisfaction reporto Progress on meeting teamso Recognition dinnero Benchmarking report

Eventually, within three to five years the quality council activities will become so ingrained in the culture of the organization that they will become a regular part of the executive meetings. When this state is achieved, a separate quality is no longer needed quality becomes the first item on the executive meeting agenda.

1.13 QUALITY STATEMENTS In quality statements, the vision statement, mission statement, and quality policy statement. Once developed, they are only occasionally reviewed and updated. They are part of the strategic planning process. The utilization of the three statements varies considerably from organization to organization. In fact, small organizations may use only the quality policy statement. Additionally, there may be considerable overlap among the statement. One of the common characteristics of Baldrige National Quality award winners is that all have a vision of what quality is and how to attend it.

1.13.1 Vision Statement

The vision statement is a short declaration of what an organization aspires to be tomorrow. It is the ideal state that might never be reached but which you continually strive to achieve. Successful visions are timeless, inspirational and become deeply shared within an organization, such as IBM’s service, apple’s computing for the masses, Disney theme park’s

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the happiest photography. These shared visions usually emerge over time. Ideally, visions are evaluated to a cause. Successful visions provide a short guideline for decision-making. Having a concise statement of the desired end provides criteria for sound decision making. Tim Frye of Motorola, inc once remarked that he used the company’s vision statement when faced with difficult decisions in gray areas that were not covered by company policy. It is important that the leader articulate and act upon the vision and that employees understand the vision and can connect their work with the well being of the organization. One way to reinforce the significance of the vision statement is to include it on employee badges. An example, of simple, one-sentence vision statement is

“We will be the preferred provider of safe, reliable and cost effective products and services that satisfy the electric-related needs of all customer segments “

FLORIDA POWER & LIGHT COMPNAY.

1.13.2 Mission Statement

The mission statement answers for the following questions: who we are, who are the customers, what we do, and how we do it. This statement is usually one paragraph or less in length, is easy to understand, and described the function of the organization. It provides a clear statement of purpose for employees, customers and suppliers. An example of a mission statement is,

“To meet customer’s transportation and distribution needs by being the test at moving their goods on time, safely and damage free.”

CANADIAN NATIONAL RAILWAYS.

The last statement defined the activities as transportation and distribution rather than a railroad. Therefore, Canadian national Railways can operate barges, containerized shipments, trucks, and aircraft and ocean-going vessels.

1.13.3 Quality Policy Statement

The quality policy is a guide for every one in the organization as to how they should provide products and service to the customers. It should be written by the CEO with feedback from the work face and be approved by the quality council. Common characteristics are:

o Quality is first among equalso Meet the needs of the internal and external customers.o Equal or exceed the competitiono Continually improve the quality.o Include business and production practiceso Utilize the entire work force.

A quality policy is a requirement of ISO/QS9000. A simple quality policy is,“Xerox is a quality company quality is the basic business principle for Xerox.

Quality means providing our external and internal customers with innovative products and services that fully satisfy their requirements. Quality is the job of every employee.”

XEROX CORPORATION

1.14 STRATEGIC PLANNINGMany organizations are finding that strategic quality plans and business plans are in separable.

Goals and Objectives Goals and objectives have basically the same meaning. However, it

is possible to differentiate between the two by using goals for long-term planning and objectives for short-term planning. The goal is to win the war; the objective is to capture the bridge. Concrete goals are needed to provide a focus, such as improve customer satisfaction, employee satisfaction, and processes. Goals can force changes in leadership’s style from

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reward and punishment to identifying and proving system problems. Goals must be based on statistical evidence. Without statistical knowledge of the system, goals merely reflect the assumption that slogans, exhortation and hardware will miraculously change the system. Goals must be definitive, specific, and understandable, using concrete results rather than behaviors or attitudes. The most important characteristic of goals is that they be measurable. Only measurable goals can be evaluated. Goals must have a plan or methods with resources for its achievement. If there is not a cause – and – effect relationship between the goals and the method, and the goal is not a valid one. In addition, a specific timeframe or deadline for achieving the goal should be given. Goals must be challenging yet achievable. Those individually, work groups, departments and functional areas that are affected by the goals should be involved in their development. Stretch goals are satisfactory provider they are based on benchmark data. The characteristics of objectives are identical to those given here for goals; they are operational approaches to attain the goals.

SEVEN STEPS TO STRATEGIC PLANNING

The process starts with the principle that quality and customer satisfaction are the center of organization future. It brings together all the buy stakeholders.

1. Customer Needs The first step in it discovers the future needs of the customers. Who will they be will your customer base changes what will they want? How will the organization meet and exceed expectations?

2. Customer Positioning Next the planners determine where the organizations want to be in relation to the customers. Do they want to retain, reduce or expand the customer base? Products or services with poor quality performance should be targeted for break should or eliminated. The organization needs to concentrate its efforts on areas of excellence.

3. Predict the Future Next, the planners must look into their crystal balls to predict future conditions that will affect their product or service. Demographics, economic forecasts, and technical assessments or projections are tools that help predict the future. More than on organization product or service has become obsolete because if failed to foresee the changing technology. Note that the rate of change is continually increasing.

4. Gap Analysis This step requires the planners to identify the gaps between the current state and the future state of the organization. An analysis of the core values and concepts is an excellent technique for pinpointing gaps.

5. Closing the Gap The plan can now be developed to close the gap by establishing goals and

responsibilities. All stakeholders should be included in the development of the plan.

6. AlignmentAs the plan is developed, it must be aligned with the mission, vision and core values

and concepts alignment, the plan will have little chance of success.

7. Implementation

This last step is frequently the most difficult. Resources must be allocated to collecting data, designing changes, and overcoming resistance to change. Also part of this step is the monitoring activity to ensure that progress is being made. The planning group should meet atleast once a year to assess progress and take any corrective action.

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Strategic planning can be performed by any organization. It can be highly effective, allowing, organizations to do the right thing at the right time, every time.

1.15 DEMING PHILOSOPHY

Deming’s philosophy is given in his 14 points

1. Create and publish the Aims and purposes of the organizations Management must demonstrate constantly their commitment to this statement. It

must include investors, customers, suppliers, employees, and the community and quality philosophy. The statement is a for ever – changing document that requires input from everyone. Organizations must develop a long – term view of atleast 10 years and plan to stay range goal. Resources must be allocated for resources, training and continuing education to achieve the goals. Innovation is promoted to ensure that the product or service does not become obsolete. A family organizational philosophy is developed to send the message that everyone is part of the organization.

2. Learn the New philosophy Top management and everyone must learn the new philosophy. Organizations must seek never – ending improvement and refuse to accept non conformance. Customer satisfaction is the number one priority, because dissatisfied customers will not continue to purchase nonconforming products services. The organization must concentrate on defect prevention rather than defect detection. By improving the process, the quality and productivity will improve. Everyone in the organization, including the union, must be involved in the quality journey and change his or her attitude about quality. The supplier must be helped to improve quality by requiring statistical evidence of conformance and shared information relative to customer expectations.

3. Understand the purpose of inspection Management must understand that the purpose of inspection to improve the process and reduce its cost. For the most part, mass inspection is costly and unreliable. Where appropriate, it should be replaced by never – ending improvement using statistical techniques. Statistical evidence is required of self and supplier. Every effort should be made to reduce and than eliminate acceptance sampling. Mass inspection is managing for failure and defect prevention is managing for success.

4. Stop Awarding Business Based on Price Alone The organization must stop awarding business based on the low bid, because price has no meaning without quality. The goal is to have single suppliers for each item to develop a long. Term relationship of loyalty and trust, thereby providing improved products and services. Purchasing agent must be trained in SPC and require it from suppliers. They must follow the materials throughout the entire lifecycle in order to examine how customer expectations are affected and provide feedback to the supplier regarding the quality.

5. Improve Constantly and Forever the System Management must take more responsibility for problems by actively finding and correcting problems so that quality and productivity are continually and permanently improved and costs are reduced. The focus is on preventing problems before they happen. Variation is expected, but there must be a continual striving for its reduction using control charts. Responsibilities are assigned to team tom remove the causes of problems and continually improve the process.

6. Institute Training Each employee must be oriented to the organizations philosophy of commitment to never-ending improvement. Management must allocate resources to train employees to

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perform their jobs in the best manner possible. Everyone should be trained in statistical methods, should be used to monitor the need for further training.

7. Teach and Institute Leadership Improving supervision is management’s responsibility. They must provide supervision with training in statistical methods and these 14 points so the new philosophy can be implemented. Instead of focusing on a negative, fault-finding atmosphere, supervisors should create a positive, supportive one where pride in workmanship can flourish. All communication must be clear from top management to supervisors to operators.

8. Drive out Fear, Create Trust and create a climate for innovation Management must encourage open, effective communication and team work. Fear is caused by a general felling of being powerless to control important aspects of one’s life. It is caused by a lack of job security, possible physical harm, performance appraisals, and ignorance of organization goals, poor supervision, and not knowing the job. Driving fear out of the workspace involves managing for success. Management can begin by providing workers with adequate training, good supervision, and proper tools to do the job, as well as removing physical dangers. When people are treated with dignity, fear can be eliminated and people will work for the general good to the organization. In this climate, they will provide ideas for improvement.

9. Optimize the efforts of teams, groups and staff areas Management must optimize the efforts of team, workgroups, and staff areas to achieve the aims and purpose of the organizations. Barriers exist internally among levels of management among department with in departments and among shifts. Externally they exists between the organization and its customers and suppliers. These barriers exist because of poor communications, ignorance of the organization mission, competition, fear and personal grudges or jealousies. To break down the barriers, management will need a long-term perspective. All the different areas must work together. Attitudes need to be changes; communication channels opened; project teams organized; and training in teamwork implemented. Multifunctional teams, such as used in concurrent engineering, are an excellent method.10. Eliminate Exhortations for the work force

Exhortations that ask for increased productivity without providing specific improvement methods can handicap an organization. They do nothing but express management’s desires. They do not produce a better products or service, because the workers are limited by the system. Goals should be set that the achievable and are committed to the long term success of the organization. Improvement in the process can not be made unless the tools and methods are available.

11.a. Eliminate Numerical Quotas for the Work Force Instead of Quotas, management must learn and institute methods for improvement. Quotas and work standards focus on quantity rather than quality. They encourage poor workmanship in order to meet their quotas. Quotas should be replaced with statistical methods of process control. Management must provide and implement a strategy for never-ending improvements and work with the workforce to reflect the new policies.

11 b. Eliminate Management by objective Instead of management by objective, management must learn the capabilities of the processes and how to improve them. Internal goals set by management, without methods, area a burlesque. Management by numerical goal is an attempt to manage without knowledge of what to do.

12. Remove Barriers That rob people of pride of workmanship Loss of pride in workmanship exists throughput organizations because 1) Workers do not know how to relate to the organization’s mission.2) They are being blamed for system problems.3) Poor design lead to the production of “junk”.

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4) Inadequate training is provided.5) Punitive supervision exists6) Inadequate or ineffective equipment is provided for performing the required work.Restoring pride will require a long-term commitment by management. When workers

are proud of their work, they will grow to the fullest extent of their job. Management must give employees operational job descriptions, provide the proper tools and materials, and stress the worker’s understanding of their role in the total process. By restoring pride, everyone in the organization will be working for the common good. A barrier for people on salary is the annual rating of performance.

13. Encourage Education and self-improvement for everyoneWhat an organization need is people who are improving with the education. A long-

term commitment to continuously train and educate people must be made by management. Deming 14 points and the organization’s mission should be foundation of the education program. Everyone should be retrained as the organization requirement changing environment.

14. Take Action to Accomplish the Transformation Management has to accept the primary responsibility for the never-ending improvement of the process. It has to create a corporate structure to implement the philosophy. A cultural change is required from the previous “Business as usual” attitude. Management must be committed, involved and accessible if the organization is to succeed in implementing the new philosophy.

1.16 BARRIERS FOR IMPLEMENTING TQM

There are many barriers for implementing TQM in an industry. These include:1. Lack of commitment The top management only provides lip service and no substantial management commitment is evidenced. The obsessive commitment should not only be demonstrated by the management but the same should be effectively communicated to all employees.

2. Inability to change organizational culture Changing an organization’s culture is very difficult and long drawn process. Individuals resist change; they become accustomed to doing a particular process and it becomes the preferred way. Organizations that spend more time planning for the cultural aspects of implementing a TQM program will improve their chance is success.

3. Improper planning All constituents of the organization must be involved in the development of the implementation plan and any modifications that occur as the plan evolves. Emphasis should be on comprehensive and complete planning covering all factors and including customer requirements.

4. Lack of continuous training and education Training and education should be an ongoing process covering everyone in the organization. Training needs should be determined and structured training should be imparted to achieve these needs.

5. Incompatible organizational Structure Difference between departments and individuals can create implementation problems. Restructuring to make the organization more responsive to customer needs may be needed.6. Ineffective Measurement techniques Key characteristics of the organization should be measured so that effective decisions can be made. In order to improve a process one needs to measure the effect of improvement ideas. Access to data and quick retrieval is necessary for effective processes.

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7. Inadequate attention to internal and external customers Organizations need to understand the changing needs and expectations of their customers – both external and internal. Effective feedback mechanisms that provide data for decision making are necessary for this understanding.

8. Inadequate use of empowerment and teamwork Individuals should be trained and empowered to make decisions that affect the efficiency of their processes or the satisfaction of their customers.

9. Failure to continually improve It is tempting to sit back and rest on your laurels. However, a lack of continuous improvement of the processes, product and or service will even leave the industry leader to slip and fail.

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POSSIBLE QUESTIONSPART A [2 Marks]

1. Define Quality. 2. Define Quality as defined by ISO. 3. What are the dimensions of quality? 4. What is the need for quality planning? 5. Write down the essential steps in quality planning. 6. Draw the Juran's quality planning road map. 7. Draw the organization structure for team Taurus. 8. What is cost of quality? 9. What are the different Quality costs? 10. Briefly explain about prevention costs. 11. Briefly explain about appraisal costs. 12. Briefly explain about failure costs. 13. What are the hidden costs? 14. What are the objectives of quality cost evaluation? 15. Define TQM? 16. What are the basic concepts of TQM? 17. What are the popular awards for quality? 18. Mention any two Indian companies who have won Deming award. 19. Who trained Japanese in quality after the Second World War? 20. Define Leadership. 21. What are the principles of leadership? 22. What is a quality council? 23. What are the duties of a quality council? 24. What is a quality statement? 25. What is a vision statement? Give an example. 26. What is a mission statement? Give an example. 27. What is a quality policy statement? Give an example. 28. What are the seven basic steps in strategic planning?

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PART B [16 Marks]

1. What are dimensions of quality? Give examples. 2. What are the different costs of quality? Explain with examples. 3. Discuss in detail about the optimum quality cost model. 4. What are the techniques you know for analyzing quality cost?

Explain in detail. 5. Explain the basic concepts of TQM. 6. Review the history of TQM chronologically. 7. Explain the principles of TQM. 8. What are the principles of a good leader? Explain. 9. Discuss in detail the role of senior management. 10. Explain in detail the functions of a quality council. 11. What are quality statements? Explain with examples. 12. Explain the basic steps in quality planning process. 13. Write the fourteen steps of Deming's philosophy for improving quality, productivity and competitiveness. 14. Enumerate the barriers to TQM implementation

ASSIGNMENT TOPICS

1. Write the fourteen steps of Deming's philosophy for improving quality, productivity and competitiveness. 2. Enumerate the barriers to TQM implementation 3. What are the techniques you know for analyzing quality cost? Explain in detail.

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