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MODULE 1

Introduction to TQM

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Meaning of the terms quality

Fitness for the purpose

Right first time

Customer satisfaction

Conformance to requirements Value of money

Customer delight

Customer satisfaction

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Fitness for the purpose at reasonable cost

Joseph M. Juran

Quality is conformance to requirements-Philip B Crosby

Quality is totality of features and characteristics of a

product or service that bears on its ability to meet

stated or implied needs ISO 8402

Quality is meeting or exceeding customers

expectations

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Quality control and quality assurance

Quality Control includes activities related to

1. Identifying quality parameters

2. Identifying units of measurement

3. Setting standards4. Measuring actual performance

5. Taking corrective actions for any deviations

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Quality control refers to all those functions or activities thatmust be performed to fulfill the companysobjects

It is systematic control of all those variables which affects thequality of a product. It also aims at prevention of defects

Quality control is a system of routine technical activities, tomeasure and control the quality of the inventory as it is beingdeveloped

The QC system is designed to Provide routine and consistent checks to ensure that there are no

deviations

Identify and address errors defect

Document and record all quality related activities

Quality control begins even before state of production

activities and it includes development system to ensurehigh quality raw material, purchased parts and othersupplies . It ensures that during the production activitiesquality specifications are maintained this processcontinued till products are produced as per desiredquality.

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Quality assurance

Any action directed towards providing customers with

goods and services of appropriate quality.

It relies on comprehensive system of planning,documentation, statistical process control and certification

of product.

QA activities include a planned system of reviewprocedures conducted by personnel not directly involved

in the inventory compilation/development process.

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Quality dimensions of products and services

Performance

Reliability

Features

Conformance Durability

Serviceability

Aesthetics

Perceived Quality

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Quality dimensions of services

Performance

Features

Reliability

Conformance Durability

Serviceability

Aesthetics

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Quality and competitive advantage

To avoid wrong word of mouth

To attract a new customer it cost five times more

Dissatisfied customers wont by form us

Distinction from competitors Can save your business money-skill- employee

productivitycustomer satisfaction

Customers are ready to pay more for a better product or

service 95% of the dissatisfied customers will become loyal

customers again if their complaints are handled well and

quickly.

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TQM

TQM is corporate business management philosophy

which recognizes that customer needs and business

needs are inseparable

TQM is a management philosophy that seeks to integrate

all organizational functions to focus on meeting customer

needs and organizational objectives.

TQM views an organization as a collection of process.

It maintains that organizations must strive to continuously

improve these processes by incorporating the knowledge

and experience of workers

Objective: Do the right things, right the first time, every

time.

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TQM is foundation of activities , which includes

Commitment by senior management and all employees

Meeting customer requirements Reducing development cycle times

Just In Time/Demand Flow Manufacturing

Improvement teams

Reducing product and service costs Systems to facilitate improvement

Line management ownership

Employee involvement and empowerment

Recognition and celebration

Challenging quantified goals and benchmarking

Focus and processes/ improvement plans

Specific incorporation in strategic planning

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This shows that TQM must be practiced in all activities, by

all personnel, in manufacturing, marketing, engineering,

R&D, sales, purchasing, HR, etc.

It focuses on total satisfaction of customer through

continuous improvement.

Total: Every one associated with the company is involved

in continuous improvement

Quality: Customers expressed and implied needs are

fully met

Management: Executives are fully committed

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Cost of quality

The cost of quality are the cost associated with the prevention,discovery, and resolving of defects in parts i.e., it, refers to thecosts associated with providing poor quality product or service.

The cost of quality measurement can track changes over timefor one particular process, or be used as a benchmark forcomparison of two or more different process.

E.X: two machines, different production lines, sister plants, two

competitor companies

It is the price of nonconformance.

-Philip Crosby

It is the cost of poor quality.

-Juran

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Sum of everything that would not have been necessary if

everything else was done right the first time.

Those costs associated with the creation and control of

quality as well as the evaluation and feedback of

conformance of quality reliability and safety requirements,

and those costs associated with the consequences of

failure to meet the requirements both within the factory

and in the hands of the customers.

-Feigenbaum

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The cost of quality is not the price of creating a quality

product or service. It is the cost of not creating a quality

product or service.Quality costs are the total of the cost incurred by:

1. Investing in the prevention of nonconformance to

requirements

2. Appraising a product or service for nonconformance torequirements

3. Failing to meet requirements.

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Cost of Quality

Conformance Non-conformance

Prevention Appraisal Internal failure External failure

Fig: cost of quality concept

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Prevention costs These are the costs of all activities specifically designed to preventpoor quality in products or service

Prevention costs are associated with design, implementation,maintenance, and planning prior to actual operation in order to avoiddefects from happening

Ex: New product review

Quality planningSupplier capability surveys

Process capability evaluations

Quality improvement team meetings

Quality improvement projects

Quality education and training

Market research

Contract review

Design reviewField trials

Supplier evaluation

Process plan review

Design and manufacture of fixtures

Preventive maintenance

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Appraisal costs

These are the costs associated with measuring, evaluating orauditing products or services to assure conformance to qualitystandards and performance requirements.

Appraisal costs are spent to detect defects to assureconformance to quality standards.

Ex: Test of purchased material

In-process and final inspection

Product, process or service audits

Measuring test equipment

Associated supplies and materials testing

Proto type testing Vendor surveillance

Final inspection

Laboratory testing

Quality audits

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Failure

These are failure costs resulting from products or services

not conforming to requirements or customer/user needs.

Failure costs are divided into internal and external failure

categories.

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Internal failure costs

These are failure costs occurring prior to delivery or shipment ofthe product, or the furnishing of a service, to the customer.Internal failure costs occurs when results of work fail to reachdesignated quality standards, and are detected before transfer tothe customer takes place

Ex: Scrap

Rework

Re-inspection

Re-testing

Material review

Design changes

Scrap due to design changes

Excess inventory

Down time of plant an machinery

Trouble-shooting and investigation of defects

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External failure costs

Failure costs occurring after delivery or shipment of the productand during or after furnishing of a service to the customer areknown as external failure costs

External failure costs occur when the product or service from aprocess fails to reach designated quality standards and is notdetected until after transfer to the customer

EX: Processing customer complaints

Customer returns

Warranty claims

Product recalls

Repair of sold goods

Product liability and litigation costs

Interest charges on delayed payment due to quality problems

Loss of customer goodwill and sales

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Importance of quality

Consumer retention and value

Reputation

Premium Price

Safety Quality is strategic

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Basic principles of TQM

Customer focus

Participation and teamwork

Process focus

Continuous improvement Kaizen(Good change)

System approach to management

Factual approach to Decision-Making

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TQM VS Traditional management

Characteristics TQM Approach Traditional Approach

Management

understanding and

attitude

Considers quality

management as an

essential part of the

company system

Trends to blame quality

department for quality

problems

Quality organization

status

Quality management as

essential part of the

company

Considers that quality is

hidden manufacturing or

operations

Problem handling Emphasis on prevention

of problems

Fire fighting approach

Quality improvementaction

Continuous activity No organizational activity

Priority Quality is top most priority Profit is top most priority

Focus Customer satisfaction Managements

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Characteristics TQM Approach Traditional Approach

Span of control Large span of control,authority pushed to lower

levels

Short span

Responsibility for quality With top management Delegated to

subordinates

Employee High involvement and

participation

Very less participation

Strategic planning Quality planning is

integrated to strategic

business planning

Focus on financial and

marketing issues

Organization Networking across and

among the functions

Hierarchical-Vertical

Team work High emphasis Very low

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Advantages of TQM

Better employee relations

Improved Operational Performance

Greater Customer Satisfaction

Increased Financial performance Creates a Good corporate culture

Increases Efficiency

Improves Organizational development

Promotes supplier/customer satisfaction

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Evolution of TQM

Origin of quality of goods and services dates back to time

immemorial

Concept of quality control goes back to the Middle ages

Feigenbaum has divided the chronological evolution of

quality control into five phases, namely

Operator quality control

Foreman quality control

Inspection quality control

Statistical quality control

Total quality control

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Contd

SQC employs statistical methods to mange the quality of goodsand services.

In 1924, Walter A. Shewhart of the Bell Telephone Laboratorieslaid the foundation for statistical Quality control

The are a of SQC has been enriched by the work of numerousstatisticians, quality philosophers and researchers

Prominent contributors include

H.E. Dodge,

H. G. Romig

Edwards DemingJoseph M. Juran,

Kaoru Ishikawa

Philip Crosby

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Contd

Year Milestone1924 Walter Shewhart developed the control chart

1931 Walter A. Shewhart of Bell Laboratories introduced statistical

quality control in his book Economic Control of Quality of

Manufactured products

1940 W. Edwards Deming assisted the U. S. Bureau of the Census inapplying statistical sampling techniques

1941 W. Edwards Deming joined the U. S. War Department to teach

quality-control techniques

1950 W. Edwards Deming addressed Japanese scientists, engineers,

and corporate executives on the subject of quality1951 Joseph M. Juran published the Quality Control Handbook

1954 Joseph M Juran addressed the Union of Japanese Scientists and

Engineers

1968 Kaoru Ishikawa outlined the elements of Total Quality Control

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Year Milestone

1970 Philip Crosby introduces the concept of Zero defects

1979 Philip Crosby publishes Quality is Free

1980 Western industry began to import the concept of TQC under the

name total Quality Management

1980 American electric giant, Motorala, pioneered the concept of SixSigma

1982 W. Edwards Deming published quality, productivity and

competitive position.

1984 Philip Crosby publishes Quality without Tears: The art of hassle-

Free Management1986 W. Edwards Deming published out of Crisis

1987 The US Congress created the Malcolm Baldrige National Quality

Awards

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Contd..

Control Chart-1924

Acceptance Sampling Plans -1925

The Cause and effect diagram/The Ishikawa Diagram -

1943 Statistical thinking in Japan

Deming Cycle-1950

The JuransTriology-1951

Total Quality Control(1960-1980)

Zero defects-1979 Six sigma - 1980

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