Ba5107 TQM Study Material22

DEPARTMENT OF MANAGEMENT STUDIES
BA 5107: TOTAL QUALITY MANAGEMENT

UNIT I INTRODUCTION :
Quality – vision, mission and policy statements. Customer Focus – customer perception of quality,
Translating needs into requirements, customer retention. Dimensions of product and service
quality. Cost of quality.
Introduction to Quality
• Conformance to Specifications
• Technique to guarantee survival in world class competition
• Sustained Performance and Customer Responsiveness ( Microsoft)
• Thus Quality is “ The ability of a product or service to meet the customer needs.”
Definitions – Quality
• Deming : Quality is a predictable degree of uniformity and dependability, at low cost and
suited to the market.
• Juran : Quality is fitness for use.
• Taguchi : Quality is the (minimum)loss imparted by a product to society from the time
the product is shipped.
• Feigenbaum :Quality is, a way of managing the organization.
• Philip Crosby : Quality is conformance to requirements.
• ISO definition of quality is as follow
“Quality is the totality of characteristics of an entity that bear on its ability to satisfy
stated and implied needs.”
Quality can be quantified as follows
Q=P/E
Where Q is quality
P is Performance
E is Expectations
Q › 1 then the quality of the product is good
Total Quality Management (TQM)- Definitions

• Total -- Made up of the whole.
• Quality – Degree of excellence a product or services provides.( Quality gurus definition)
• Management – Act , Art , or manner of handling, controlling , directing, etc.
TQM is the art of managing the whole to achieve excellence.
ISO -
Total Quality Management (TQM) is the management approach of an organization,
Page 1
centered on quality, based on the participation of all its members and aiming at long term success
through customer satisfaction and benefits to all members of the organization and society.
Indian Statistical Institute –

TQM is the integrated organizational approach in delighting customers both
internal and external by meeting their exceptions on a continuous basis through everyone
involved with the organization working on continuous improvements in all products, services
and process along with proper problem solving methodology
Characteristics of TQM
1. TQM is customer oriented
2. TQM is long term commitment for continuous improvement of all process
3. TQM is team work
4. TQM requires the leadership of the top management and continuous involvement.
5. TQM is a strategy of continuous improving performance at all levels and in all areas of
responsibility.
6 Basic Concepts of TQM

• Top Management commitment – Participation, Complete involvement and
communication of the TQM Programme.
• Focus on customer – Achieving Cust Satisfaction is the heart of TQM.
• Effective involvement and utilization of the entire work force – “Principle of employees
involvement "or “ Respect for People” Each person is responsible for the quality of the
work they do.
• Continuous Improvement : TQM is based on progress and improvement. It is the way to
make better use of the company ‘s total quality resources.
• Treat suppliers as partners
• Establishing performance measures for the processes:
• Quantitative data to measure to the continuous quality improvement.
• Performance measures like Productivity, sales turnover, Absenteeism, customer
satisfaction etc.
Quality perspectives / Dimensions of Quality
Everyone defines Quality based on their own perspective of it. Typical responses about the
definition of quality would include:
1. Perfection
2. Consistency
3. Eliminating waste
4. Speed of delivery
5. Compliance with policies and procedures
6. Doing it right the first time
7. Delighting or pleasing customers
8. Total customer satisfaction and service
Page 2
• Quality perspectives
User-based perspective
• “fitness for intended use.”
Value-based perspective
• “quality product is the one that is as useful as competing products and is sold at a lesser
price.”
Manufacturing-based perspective
• “the desirable outcome of a engineering and manufacturing practice, or conformance to
specification.”
At organizational level, we need to ask following questions:

• Which products and services meet your expectations?
• Which products and services you need that you are not currently receiving?
At process level, we need to ask:
• What products and services are most important to the external customer?
• What processes produce those products and services?
• What are the key inputs to those processes?
• Which processes have most significant effects on the organization’s performance
standards?
Page 3
Dimensions of Quality
• Product / Manufacturing Dimensions
– Performance
– Features
– Reliability
– Conformance
– Durability
– Serviceability
– Aesthetics
– Perceived quality
• Performance
– Primary product characteristics or the attributes of the product such as brightness
• Features
– Secondary characteristics of the Product, added features Remote control.
• Conformance
– Meeting the specifications or industry standards.
• Reliability
– Consistency of the performance over time, average for a unit to stop functioning (
fail)
• Durability
– Useful life, includes repair.
• Service
– Resolution of the problems and complaints ease of repair.
• Response
– Human to human interface such as courtesy of the dealer.
• Aesthetics
– Sensory characteristics such as exterior finish.
• Reputation
– Past performance and other intangibles such as being ranked firs
• Service Dimensions
– Reliability
– Responsiveness
– Competence
– Access
– Courtesy
– Communication
– Creditability
– Understanding
– Security
– Tangibles
• Reliability
– Consistency of performer and dependability. Ability to perform the promised
service dependably and accurately
• Responsiveness
Page 4
– Willingness or readiness to help and provide prompt service

• Competence
– Possession of skills and knowledge required to perform the service.
• Access
– Approachability and ease of contact.
• Courtesy
– Politeness, Respect, Consideration , clean and neat appearances. Caring and
individualized attention.
• Communication &Understanding
– Education and informing customers in language they can understand, listening to
customers.
• Credibility
– Trustworthiness, belief, Dependability.
• Security
– Freedom from danger and risk. Providing assurance.
• Tangibles
– The physical evidence of service. Physical facilities, equipment and appearance of
personnel
Evolution of Quality
Evolution
TQM
TQC &CWQC
Company Wide Quality Control
Total Quality Control
Statistical Quality Control
Inspection
Foreman
Craftsman
Years
1900 1920 1940 1960 1980 1990 2000
Quality statements
Three elements of quality statements.

• Vision statement
• Mission statement
• Quality Policy statement
Vision statement
It is the short declaration of what an organization aspires to be tomorrow
Page 5
Eg: To continuously enrich knowledge base for practioners in mobility industry and
institutions in the service of humanity.(Society of Automotive Engineers.
Mission statement
It describes the functions of the organization. The mission statement answers the following
question
1. Who we are?
2. Who are the customers?
3. And how we do it?
Eg Mission statement of ITC ltd:

• Concern for the ultimate customers- millions of customers
• Concern for the intermediate customers- the trade
• Concern for the suppliers – the sources of raw materials and ancillaries
Quality Policy Statement

It’s a guide for everyone in the organization as to how they provide products and service to the
customers.
It is written by the CEO with the feedback from the workforce and be approved by the quality
council
Eg : Quality policy of Xerox Company.
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.
Cost Of Quality.
The Value of Quality must be based on its ability to contribute to profits. Quality related cost are
the cost incurred by an organization to ensure that the products / services it provides conform to
customer requirements.
Definition:
Quality cost are defined as those costs associated with the non-achievement of products / service
quality as defined by the requirements established by the organization and its contract with the
customer.
Quality cost is the cost of poor products or services.

When Quality Cost is too high, It is sign of management ineffectiveness, which affects the
organization competitive position.
Prevention cost:
Page 6
“ The cost that are incurred on preventing a quality problem from arising.”
 Marketing / Customer/ User

 Product / Service / Design Development
 Purchasing
 Operations
 Quality Administration
Appraisal Cost:
“ The Cost incurred in assessing that the products / services conform to the requirements”
 Purchasing Appraisal Cost

 Operation ( Manufacturing or Service ) Appraisal Cost
 External Appraisal Cost
 Review of test and inspection data:
 Miscellaneous quality evaluation:
Internal Failure Cost :
“Cost arise due to internal failures.”
 Product or Service Design Failure Cost:

 Purchasing failure cost
 Operations cost
External Failure Cost
The cost incurred due to the non conformance of the products or services after delivery of
products to the customer.
Quality Improvement Strategy:
1. Project team:
2. Reduce the Failure cost:
3. Prevention of quality cost.
4. Reducing appraisal cost.
Quality cost report
Quality cost control is the quality cost report sent by the accounting department
provisions are made for each cost element .By comparing cost data with the historical ones a
certain amount of control can be exercised.
Page 7
Analysis
Trend Analysis
Characteristic of Trend Analysis

Pareto Analysis
It is method of classifying items, events or activities according to the relative importance.

A Pareto Diagram is a diagnostic tool commonly used for separating the vital few causes
the account for a dominant share of quality loss.
It was named after Wilfredo Pareto who devised the tool.
It is based on the Pareto Principle, Which states that a few of defects accounts for the
most of the effects.
It is otherwise called as 80/20 rule or ABC analysis .It means only 20%of defects
amounts to 80% of its effects.
Construction of the Pareto Diagram

1. Obtain the data.
2. Arrange them in descending order.( largest to smallest).
3. Calculate the percentages
4. Compute the cumulative percentages
5. Draw the bar chart with two vertical axes
6. Draw the bar above each item represents the causes of each categories
7. Plot the cumulative percentage line.
Customer Focus
Customer is the King.

“Quality what the customer wants” It emphasis on the customer.
Page 8
Customer satisfaction must be the primary goal of any organization , therefore it is

essential that every employee in the organization understands the importance of the customer. A
satisfied customer will led to increased profits.
Customer satisfaction Model:
Customer satisfaction is not an objective but a feeling or attitude. Since it is subjective it

is not easy to measure.
There are so many facets to a customer experience with a product and service that need to
be measured individually to get the accurate picture of customer satisfaction.
Customer Satisfaction Model – Teboul
Customers:
1. The most important people in the business

2. Not dependent on the organization, The organization depends on them
3. People who come with their needs
4. Deserve the most courteous and attentive treatment.
Page 9
“Didn’t know I Satisfaction

wanted it but I
like it.”
Satisfier
One Dimensional
Desired Quality
Delighters
Excited Quality
Service Service
Performance Performance
Dissatisfier
Must-be “Cannot increase
Expected Quality my satisfaction, but
can decrease.”
Dissatisfaction
Kano Model
These are the categories of quality.
Attractive Quality
These attributes provide satisfaction when achieved fully, but do not cause dissatisfaction when
not fulfilled. These are attributes that are not normally expected, For example, a thermometer on
a package of milk showing the temperature of the milk. Since these types of attributes of quality
unexpectedly delight customers, they are often unspoken.
One-dimensional Quality
These attributes result in satisfaction when fulfilled and dissatisfaction when not fulfilled. These
are attributes that are spoken of and ones which companies compete for. An example of this
would be a milk package that is said to have ten percent more milk for the same price will result
in customer satisfaction, but if it only contains six percent then the customer will feel misled and
it will lead to dissatisfaction.
Must-be Quality
These attributes are taken for granted when fulfilled but result in dissatisfaction when not
fulfilled. An example of this would be package of milk that leaks. Customers are dissatisfied
when the package leaks, but when it does not leak the result is not increased customer
satisfaction. Since customers expect these attributes and view them as basic, it is unlikely that
they are going to tell the company about them when asked about quality attributes.
Indifferent Quality
These attributes refer to aspects that are neither good nor bad, and they do not result in either
customer satisfaction or customer dissatisfaction.
Reverse Quality
These attributes refer to a high degree of achievement resulting in dissatisfaction and to the fact
that not all customers are alike. For example, some customers prefer high-tech products, while
others prefer the basic model of a product and will be dissatisfied if a product has too many extra
features
Page 10
Types of Customers:
1. Internal customers
2. External customers
Internal Customers :
1. The customers inside the organization

2. The flow of work, product and service in the organization, Each department is dependent
on one and another.
3. Every person in a process is considered as the customer of the other preceding operation.
External Customers
The customers outside the organization.
 Uses the product or service

 Who purchase the product
 Who influence the sale of the Product or services.
Customer Supplier Chain:
Internal Customer – Supplier Chain
Outputs to
Inputs from the External
External Customer
Customers
Customer Complaints:
Customer Satisfaction analysis helps the organization in the following ways:
 A totally satisfied customer contributes to revenue of the company.
 A totally dissatisfied customer decrease revenue
Page 11
Customer Feedback :
Customer feedback is required for the following reasons
1. To discover customer dissatisfaction

2. To identify the customer needs
3. To discover relative priories of quality
4. To compare performance with competition
5. To determine opportunities for improvement.
Tools of Customer Complaints:
Customer feedback has to been given importance it drives to the new product development.
Help in identifying and analyzing the errors ,
• Comment card
• Customer Questionnaire
• Focus Groups
• Toll Free telephone
• Customer Visit
• Report Card
• Internet & Computers
• Employee Feedback.
• Mass customization
Page 12
UNIT II PRINCIPLES AND PHILOSOPHIES OF QUALITY MANAGEMENT:
Overview of the contributions of Deming, Juran Crosby, Masaaki Imai, Feigenbaum, Ishikawa,
Taguchi techniques – introduction, loss function, parameter and tolerance design, signal to noise
ratio. Concepts of Quality circle, Japanese 5S principles and 8D methodology.
DEMING CONTRIBUTIONS AND PRINCIPLES
PRINCIPLES OF QUALITY
William Edwards Deming (October 14, 1900 – December 20, 1993) was
an American statistician, professor, author, lecturer and consultant. He is perhaps best known
for his work in Japan. There, from 1950 onward, he taught top management how to improve
design , product quality, testing and sales through various methods, including the application of
statistical methods.
Definition
• “Quality is a predictable degree of uniformity and dependability, at low cost and suited
to the market.”
Dr. W. Deming Edwards Father of Japanese Quality Revolution and have approached the quality
management problem from the statistician perspective.
Dr. W. Deming Edwards Contributions
• Deming 14 Principles
• PDCA Cycle
• Seven Deadly Diseases
• System of Profound Knowledge.
14 Principles
1. Create and publish the Aims and Purpose of the organization
2.Learn the new philosophy
3.Understand the purpose of inspection
4.Stop awarding business based on price alone.
5.Improve constantly and forever the system
6.Institute Training
7.Teach and Institute Leadership
8.Drive out fear, create trust , and create a climate for Innovation
9.Optimize the efforts of Teams, Groups, and Staff areas.
Page 13
10.Eliminate Exhortations for work force
11.a Eliminate numerical quotas for the work force.
11.b. Eliminate Management by objective
12.Remove Barriers that rob people of pride of workmanship
13. Encourage Education and self improvement for everyone
14.Take action to accomplish the transformation.
PDSA CYCLE:
The basic PDSA cycle was first developed by Shewhart and then it was modified by Deming. It
is effective improvement technique.
It was popularized by Edward Deming hence it is called as Deming Wheel.
• PDSA stands for Plan, Do, Study and Act. It is model for testing ideas that may create
improvement.
7 deadly disease of Management

1. Lack of consistency
2. Emphasis on short term profits
3. Reliance on performance appraisal and merits
4. Reliance on the financial figures
5. Staff mobility
6. Excessive medical cost
7. Excessive legal cost
System of Profound Knowledge

• Appreciation for a system
• Knowledge of statistical theory
• Theory of Knowledge
• Knowledge of psychology
Juran’s Quality trilogy:
Page 14
• Joseph Moses Juran (December 24, 1904 – February 28, 2008) was a 20th century
management consultant who is principally remembered as an evangelist
for quality and quality management
Definition
• “Quality is fitness for use”
Juran divides quality management into three components

Planning
Control
Improvement.
Quality Quality
Planning Control
Quality
Improvement
Quality Planning:
The planning component begins with the external customer. Once quality goals are established,
marketing determines the external customers and all organizational personnel determines the
internal customers.
one might the needs by the
 Being the user of the product or service.
 Communicating with the customers through product or service.
 Simulation in the laboratory.
To planning process that develop product or service features that respond the customer needs,
meet the needs of the organization which are the optimization of cost of stakeholders and meet
the competition.
The final step is transferring plans to operations is the final step of the planning process.
 Multifunctional team with the other teams
 Training is performed by the members of the process planning team.
 Process validation to ensure with the high degree of assurance that product will
consistently produce a product or service meeting the requirement.
Quality Control
Page 15
 Determine items to be controlled and their units of measure.

 Set goals for controls and determine what sensors need to be put in place to measure the
product, process or service.
Statistical Process control methods is the primary technique in achieving control.

They are
o Pareto diagrams
o Flow diagram
o Check diagrams
Quality Improvement:
The third part of trilogy aims to attain levels of performance that are significantly higher
than current levels. Process improvements begin with the establishments of an effective
infrastructure such as the quality council .
Duties of quality council are
 To identify the improvement projects and
 Establish the project teams with the project owner.
 To determine the causes, create solutions and establish controls to hold gains.
Quality council ensures that improvement is continuous and never ending.
Juran provides an example how the three continuous improvements process are
interrelated. It provides the distinction between the chronic and sporadic waste.
The sporadic waste can be identified and corrected through quality control.
The chronic waste requires an improvement process as these waste are regular in nature.
It goes back to the quality planning step again, so that the new goals for the organization may be
established.
JURAN 10 STEPS FOR QUALITY IMPROVEMENT
1. Build awareness of the need and opportunity for improvement.

2. Set goals for improvement
3. Organize to reach the goals
4. Provide training
5. Carry out the projects to solve problems
6. Report progress
7. Give recognition
8. Communicate the results
9. Keep score
10. Maintain momentum by making annual improvement part of regular systems and
processes of the company.
Break through Concept
Page 16
• Concerns with the product life cycle

• Journey begins from the symptoms to cause
• Journey from cause to remedy
Philip Crosby
 Crosby is an American quality gurus
 His best known for the concepts of “Zero defects” and “Do it the right first time”.
Crosby contributions
• Four absolutes of Quality
• Fourteen steps for Quality Improvement
• Crosby’s Quality vaccine.
Crosby’s Absolutes for quality Improvement

1. First Absolute : The definition of quality is conformance to requirements, not goodness.
2. Second Absolute : The system for causing quality is preventive not appraisal.
3. Third Absolute : The performance standard must be zero defects, “not that close enough”.
4. Fourth Absolute : The measurement of quality is the price of non conformance, not
indexes.
Crosby’s 14 steps of Quality Improvement
Step 1 Establish and ensure management commitment.
Step 2 Form the Quality improvement team for quality improvement process
planning and administration.
Step 3 Establish Quality Measurements
Step 4 Evaluate the cost of quality and explain its use as management tool to
measure waste.
Step 5 Raise quality awareness among all employees.

Step 6 Take actions to correct problems identified through previous steps
Step 7 Establish a zero defects committee and programmee.
Step 8 Train supervisors and managers on their role and responsibilities in
Quality improvement process.
Step 9 Hold a zero defects day to reaffirm management commitment.
Page 17
Step 10 Encourage individuals and groups to set improvement goals.

Step 11 Obstacle reporting (communicate to the management any obstacle they
take in attainting their improvement goals).
Step 12 Recognize and appreciate all participants
Step 13 Establish quality council to discuss quality matters on regular basis.
Step 14 Do it all over again to demonstrate that the improvement process never
ends.
Crosby’s Quality Vaccine

• Integrity
• Systems
• Communication
• Operations
• Policies
Masaaki Imai:
• Imai was a Japanese quality guru.
Kaizen Definition
• The Kaizen philosophy is drawn from the Japanese word “ Kai ” which means
“continuous” and “ Zen ” meaning “improvement” or “wisdom”.
• Kaizen management philosophy, therefore, is defined as making “continuous

improvement”—slow, incremental but constant.
• Kaizen Events - to simplify a process, eliminating waste, creating space.
• Principles of materials handling and use of one-piece flow.
• Documentation of standard operating procedures.
• Five s’s for workplace
• Visual management by means of visual displays that everyone in the plant can use for
better communication.
• JIT / KANBAN
Page 18
– It strives to minimize inventory and eliminate wasteful activities by producing the

right part in the right place at the right time.
• Poka – Yoke
– To prevent and detect errors
• Team dynamics
– Problem solving , communications skills and conflict resloution.
Benefits of Kaizen
• Kaizen Reduces Waste in areas such as inventory, waiting times, transportation, worker
motion, employee skills, over production, excess quality and in processes.
• Kaizen Improves space utilization, product quality, use of capital, communications,

production capacity and employee retention.
• Kaizen Provides immediate results. Instead of focusing on large, capital intensive

improvements, Kaizen focuses on creative investments that continually solve large
numbers of small problems.
Comparison between Kaizen & Kairyo
Kaoru Ishikawa
• 1939 – received his doctorate of philosophy in chemical engineering from the University
of Tokyo.
Ishikawa Contribution
• Company wide Quality
• Quality Circle
• Cause and Effect Diagram.
Page 19
Company Wide Quality

• Ishikawa built on the Feigenbaum concept of Total Quality and suggested that all
employees have greater role to play.
• As every department of an organization can affect quality.
• Effects of Company Wide Quality Control, He brings out the benefits of Company wide
Quality control.
Benefits of Company Wide Quality

• Reduced Defects
• Improved Product quality
• Quality improvement becomes the norm
• Increased Reliability
• Reduced cost
• Increased Quality of Production.
• Waste is identified and reduced.
• Rework is identified and reduced.
• Improved techniques are established and continuously improved.
• Inspection and after-the-fact expenses are increased.
• Contracts are rationalized.
• Sales and market opportunities are increased.
• Company reputation is increased.
• Interdepartmental barriers are broken down and communication becomes easier.
• False and inaccurate data is reduced.
• Meetings are more effective and focused.
• Repairs and maintenance are rationalized.
• Improvement in human relations.
• Company loyalty is increased.
Cause and Effect Diagram
• It is graphical- tabular chart to list and analyze the potential causes of a given problem.
• The diagram consist of the central stem leading to the effect with the multiple branches
coming off the stem listing the various groups of possible causes of problem.
Construction of Cause and effect Diagram
• Define the effect clearly and concisely.
• Mark the short description of effect in a box. Then draw a line from this box towards left.
Page 20
• List down all possible minor and major causes through brainstroming sessions
• Mark the major causes on the branches and minor causes on sub branches .
• Look for possible solutions
• Introduce the changes
Armand Feigenbaum
• 1951 – Feigenbaum originated the concept of total quality control in his book Total
Quality Control. The book has been translated into many languages.
• The founder and president of General System Co., an international engineering company
that designs and implements total quality systems.
He defined Total Quality Control as follows:
“Total quality control is an effective system for integrating the quality development, quality
maintenance, and quality improvement efforts of the various groups in an organization so as to
enable production and service at the most economical levels which allow full customer
satisfaction.”
Crucial elements of Total Quality
• The elements of total quality to enable a totally customer focus (internal and external)
• Quality is the customers perception of what quality is, not what a company thinks it is.
• Quality and cost are the same not different.
Page 21
• Quality is an individual and team commitment.

• Quality and innovation are interrelated and mutually beneficial.
• Managing Quality is managing the business.
• Quality is a principal.
• Quality is not a temporary or quick fix but a continuous process of improvement.
• Productivity gained by cost effective demonstrably beneficial Quality investment.
• Implement Quality by encompassing suppliers and customers in the system.
Taguchi techniques:
 Taguchi methods are the statistical methods developed by Genichi Taguchi to improve
the quality manufactured goods.
 Taguchi’s significant Contributions to Quality Management include:
 Taguchi Loss Function
 The Philosophy of off-line Quality control.
Taguchi Loss function:
Taguchi has defined as the loss imparted to the society from the time a product is
shipped. Societal losses include
o Failure to meet customer requirements
o Failure to ideal performance and
o Harmful side effects
Loss – to – Society Concept :
This concept can be explained with examples :
1) Production of large Vinyl covers

 The process is just capable of meeting specifications (USL and LSL) , However it is on
target.
 To reduce its production cost the organization decided to shift the target closer to LSL.
 This resulted in substantial improvement by lowering the cost to the organization,
however the vinyl was not strong it caused substantial loss to the society. The company
lost its reputation
2) Hitting the target documented by Sony.

Assuming the target was correct, the losses of the concern are those
caused by a product critical performance characteristics deviating from the target. The design
and specifications were identical , U.S. customers preferred the color density of shipped TV sets
produced by Sony – Japan over those produced by Sony - USA.
Its clear that customers perceived quality as meeting the target rather than just meeting the
specifications.
The Quadratic loss function is described by an equation / Nominal-the-Best.
Page 22
L = k( y - )²
L = Cost incurred as quality deviates from the target.
y = performance characteristic
 = Target
k = Quality loss coefficient.
The loss coefficient is determined by setting ∆ = (y - ), the deviation from the target. When ∆ is
at the USL or LSL, the loss to the customer of repairing or discarding the product is $A. Thus,
k = A / (y - )² = A/∆²
Taguchi’s philosophy of off-line quality control:
Second contribution relates to the design of products. There are the two causes of the
variation in products design characteristics and “Noise”.
Noise arises due to variation in operating environment and human errors
Reducing such noise can be done through
i. System Design: properly designing the product and process
ii. Parameter Design : Identifying the key process variables that affect variation and then
establishing levels for these parameters which will minimize the variation.
iii. Tolerance Design: Identifying the components that contribute most to variations in the
final product and then setting appropriate tolerance for these components.
Stages of Quality Control
Page 23
System Design:
System design involves using engineering and scientific knowledge to create an initial
product prototype
Parameter Design
Parameter Design involves determining the specifications settings for product and
process parameters in terms of nominal values so that the final product will be less sensitive to
changes in environmental conditions and other uncontrollable factors.
Factors can be divided into two:
Controllable (or design) factors:

Uncontrollable factors:
Orthogonal Arrays:
The key is to achieve a robust design , the ability to determine optimum levels for the
control factors. This best achieved by an efficient design.
Taguchi has developed a series of design utilizing orthogonal arrays handling a large
number of factors and less quantifying likely interactions and optimizing the factor levels.
Signal to Noise Ratio:
Page 24
The purpose of the Taguchi analysis is to determine optimum control factors levels for
the product or process to be on target and to minimize the variation about the target .
S/N ratio = 10 log ( y ² / σ ²)
Where y and σ are the mean and S.D of (n) observation respectively.
Tolerance Design
Tolerance design is employed to reduce variation by tightening the tolerance on those

factors shown to have large impact on variation.
8D PROBLEM-SOLVING METHODOLOGY
8D is a problem-solving methodology for product and process improvement.
Eight Disciplines
 Use Team Approach

 Describe the Problem
 Implement and Verify Short-Term Corrective Actions
 Define and Verify Root Causes
 Verify Corrective Actions
 Implement Permanent Corrective Actions
 Prevent Recurrence
 Congratulate Your Team
Benefits of 8 D methodology:
1. It provides the Systematic approach for analyzing problems and identifying real root
causes
2. It enables effective containment actions and also implements permanent solutions to
prevent recurrence of problem.
Page 25
5’s House Keeping
• To establish and maintain a productive and quality environment in an organization.
5 ‘s was invented in Japan
Japanese Term English Equivalent
SEIRI Tidiness
SEITON Orderliness
SEISO Cleanliness
SEIKETSU Standardizing
Page 26
SHITSUKE Discipline
Objective of 5’S
• To create a neat and clean work place.
• To systemize day to day working
• To improve work efficiency.
SEIRI : Clearing and sorting

Remove the clutter and avoid accidents
• To identify and sort all the items that is necessary and unnecessary items and discard all
the unnecessary items.
• Develop a clear and well understood policy of disposal of broken, not repairable or
unwanted items.
SEITON: Arranging
A Place for everything and everything in its place
• To arrange everything in the proper order so that it can be easily picked up for use.
• In stores
• On shop floor
• In the office
SEISO :Cleanliness
Clean and healthy place eliminates waste
• To sweep the workplace thoroughly so that there is no dust, oil etc.
• Sweeping inside the lines of people working is the responsibility
SEIKETSU : Standardizing
Standards improve reliability and consistency
• Maintaining the high standards of workplace organization and house keeping at all times.
• Establish standards.
SHITSUKE : Discipline
Walk the talk : Action speaks louder than the words
• Self discipline.
Page 27
• All the employees must be trained in all aspects.
Relationship between various 5S
Factors in implementing 5’s

1. Participation by all:
2. Top management commitment:
3. Should be self sustaining:
4. Review the programmes
Benefits in implementing 5’S
1. Work place becomes clean and better organized

2. Results in good company and generates more business
3. Shop floor and office operations become easier and safer.
4. People become disciplined.
5. Contribute to productivity quality and employee morale.
6. Better quality awareness.
Quality Circle
Quality circle is a group of workforce members usually from within same area or similar
works, who volunteer to meet weekly to address quality problems that occur within their work
area.
Objectives of Quality Circle:
Page 28
 Supportive atmosphere which encompass the active involvement of employees in all

aspects of the work process.
 Improve quality
Characteristics of Quality Circle:

1) Maximum number of employees in any quality circle is between 6-12.
2) QC should have a homogenous group where participation members must be from within
the same department or work area.
3) Two types of problem
a. Personal well being of the worker, working conditions, housekeeping.
b. Well being of the company quality and productivity work related problems.
4) Members should be trained in statistical and other problem solving tools so that they can
identify, analyze and resolve work related problems.
Structure of Quality Circle:
Steps of Problem Solving in QC:
• Step 1 : Problem Identification and selection of a problem
• Step 2 : Analysis of the problem
• Step 3 : Development of many solutions
• Step 4 : Selection of Best solution
Page 29
• Step 5 : Presentation of the solution
• Step 6 : Implementation of the solution
Benefits of QC:
 Quality circles effects on individual characteristics

 QC effects on individual’s relationships with the others
 QC effects on workers and their attitudes toward the company.
Limitations of QC:
 Participations is not always voluntary in all cases
 Participation fades away if it lacks of top management support
 No involvement of trade unions
Successfully implementation of QC programmes :

1. Visible support and commitment from the managers at every level and direct involvement
by the managers.
2. Clear idea of an organization as to why QC was introduced
3. Support from the Trade Unions
4. Appointment of the enthusiastic and committed facilitators
Improvement Strategies:
There are four improvement strategies, choosing the right strategy for the right situation is
critical. It is also true that proper integration of the strategies will produce never ending
improvement.
 Repair:
 Refinement
 Renovation
 Reinvention
Types of Problems
• Performance problems
– Existing system is not performing satisfactorily.
• Design problems
– New or improved design.
Compliance
Unstructured
Efficiency
Process Design
Product Design
Page 30
UNIT III STATISTICAL PROCESS CONTROL:
Meaning and significance of statistical process control (SPC) – construction of control charts for
variables and attributed. Process capability – meaning, significance and measurement – Six sigma -
concepts of process capability. Reliability concepts – definitions, reliability in series and parallel,
product life characteristics curve.Total productive maintenance (TMP), Terotechnology. Business
process Improvement (BPI) – principles, applications, reengineering process, benefits and
limitations.
Maintenance
• Maintenance is defined as the “management, Control, Execution and quality assurance of

activities which ensure the achievement of optimum availability and performance of plant
in order to meet business objectives”
Total Productive Maintenance (TPM)
• TPM is the systematic execution of maintenance by all employees.

• TPM is the manufacturing led activity that emphasis on the “Continuous improvement”
Philosophy.
Objectives of TPM
• To improve effectiveness
• To achieve Autonomous maintenance
• To plan maintenance
• To train all staff in relevant skills
Types of maintenance
Breakdown Maintenance:
Preventive maintenance
Detective maintenance
Concept of TPM
• To create an environment wherein everyone feels that it is his/her responsibility to keep
the equipment running & productive.
• Everyone is responsible for maintenance
• Show interest in data concerning, utilization & efficiency
• Everyone understands that zero breakdowns, zero defects & maximum productivity are
goals.
• It takes at least two years to set a effective TPM system in place
• TPM activities are carried out in small tasks
Page 31
• Every level in the overall organization must be represented by a team or more.

• It provides empowered teams
• It provides skill work force
12 steps for TPM development
Preparation Stage: Step 1 Announce top management about the decision to introduce TPM
Step 2 Launch education & campaign to introduce TPM
Step 3 Create organization to promote teams
Step 4 Establish basic policies & goals
Step 5 Formulate policies & goals
Pre Implementation Step 6 Hold TPM

Stage
TPM Implementation Step 7 Improve effectiveness of each piece of equipment.

Stage
Step 8 Develop maintenance program
Step 9 Develop a scheduled maintenance program for the maintenance

department
Step 10 Conduct training to improve skills
Step 11 Develop early equipment management programme
Stabilization Stage Step 12 Perfect TPM implementation
Benefits of TPM
1. Increased equipment productivity
2. Improved equipment reliability
3. Reduced equipment downtime
4. Increased plant capacity
5. Lower maintenance & production costs
6 Big Losses:
Breakdown Long Interruptions, Expensive Repairs

Setup and Changeover Taking much longer than method
Idling and minor Stoppages Hard to quantify
Page 32
Reduced Speed Equipment cycle time have gradually

deteriorated
Defects and rework Quality losses and unhappy customers
Startup loss Too long to get to steady state after change.
Formula to calculate Overall equipment Effectiveness:
Break down & Setup and changeover
Availability = Loading time – Downtime

*100
Loading ( operating) time
Idling and Minor stoppages & Reduced Speed
Performance Efficiency = Theoretical Cycle time per unit * No. of Units

* 100
Operating time – Down time
Defects and rework & Start up loss
Rate of Quality = Produced Quantity – Defect Quantity

*100
Produced Quantity
Overall = Availability * Rate of Quality *

equipment Effectiveness Performance Efficiency
Terotechnology (new technology)

• Integration of interrelated activities is described as terotechnology
• Terotechnlogy is to extend the operational life & increase the efficiency of equipment &
machinery
Business Process Improvement (BPI)
Definition Business Process Improvement (BPI) is an approach designed to help organizations

redesign their existing business operations to accomplish significant improvement in production.
Effective BPI helps to generate promising results in operational efficiency and customer focus.
BPI, when implemented by means of a structured methodology, helps companies to reduce their
operational costs and cycle time, enhance customer service and improve the quality of their
products or services.
Page 33
The significance of BPI is remarkable in today’s competitive market as work processes are
extensively affected by technology. An effective way to achieve a successful Business Process
Improvement is to concentrate more on the business requirement than on the technology used to
achieve the solution.
BPI aims to reduce waste and/or variation in processes to achieve the desired outcome by using
existing resources in a better way. The ultimate goal of BPI is to bring out a drastic change in an
organization’s performance, rather than bringing out the changes in incremental steps.
Because BPI implementation is a project, all project management principles apply. This ensures
well-organized improvement processes without any conflicts. The steps are as follows:
1. Define the existing processes and structure in the organization.

2. Identify the outcomes that would add value in achieving the organization's objectives and
the best ways to align the organization’s processes to achieve these outcomes.
3. Reorganize the workforce in the organization based on the desired outcomes by means of
the various tools available in the BPI process.
Building the Business Process Improvement (BPI) Framework
Defining BPI
 Business process improvement vs. reengineering

 BPI as a driving innovator in organizations
Uncovering BPI challenges
 Analyzing your personal BPI skills

 Assessing BPI in your organization
Identifying Key Business Drivers
Developing business requirements
 Analyzing the needs of key stakeholders

 Defining the four key requirements
Deploying enterprise analysis tools
 Identifying influences on the business

 MOST
 Five forces
 PESTLE
 SWOT
Designing appropriate measurements

Page 34
 Linking business drivers to measurements

 Identifying key performance indicators (KPIs)
Discovering Process Improvements
Relating process measures to business drivers
 Analyzing process performance

 Linking processes to your business
 Recognizing the causes of poor process performance
 Time
 Cost
 Quality
 Satisfaction
Leveraging problem analysis criteria
 People
 Technology
 Business rules
 Materials
 Investigating root cause using mind mapping tools
 Relating root cause analysis to your own process
Modeling the "To-Be" Solution
Designing appropriate success criteria
 Optimizing vs. enhancing your business process

 Focusing on customer needs
Creating business process opportunities
 Determining value and uniqueness

 Dissecting the "To-Be" process
Measuring process performance
 Uncovering KPIs from business drivers

 Developing a process scorecard
 Creating an assessment plan for your own process
Selling and Implementing the Solution
Maximizing stakeholder buy-in
Page 35
 Targeting key stakeholders

 Identifying stakeholder communication styles
 Differentiating approach based on project phase
Driving change in organizations
 Determining barriers to change

 Identifying positive and negative forces for change
 Developing a force field analysis approach
 Applying force field analysis to your organization
Facilitating acceptance in your organization
 Determining organizational necessities

 Communicating the innovation effectively
 Preparing the implementation plan
Integrating BPI into Your Organization
Assessing your BPI approach
 Recognizing the history of continuous improvement

 Shadow pyramid
 Six Sigma
 TQM
 Implementing principles of continuous improvement
Changing organizational behavior
 Appraising BPI processes in organizations

 Prioritizing changes using the Ease/Impact Matrix
Applying the BPI framework
 Detailing the BPI implementation plan

 Returning to work with a plan of action
Business process Reengineering (BPR)

Statistical Process Control Charts
Meaning & Significance of SPC:

• It is defined as “ the application of statistical methods to the measurement and analysis of
variation in any process “ .
Page 36
• The application of the appropriate Statistical tools for the continuous improvement in
quality of products and services, and productivity of workforce.
Types of Data
1. Attribute Data 2. Variable Data
All Qualitative characteristics are known All those characteristics that can be
as Attribute Data . Data is discrete in quantified are known as Variable Data.
nature. Data is continuous which is obtained by
actual measurement.
Examples : Examples:
• Number of Defective pieces • A dimension of a part measured
found in a sample. • Diameter of metal cylinder
• Weekly No. of accidents in a • Temperature during heat treatment
factory process
• Monthly number of machines/
tools rejected.
Measures of Central Tendency

 A measure of central tendency of a distribution is a numerical value that describes the
central position of data.There are three Measures of Central Tendency
 Mean
 Median
 Mode
Population & Sampling

 Population
 Any collection of Individuals or of their attributes or of results of Operations

 A population or universe can be defined as an unknown pattern of variation from
which known sample has been drawn.
 Sample
 A part selected from the population.
 A sample selected resemble or represent the population
Normal Distribution
Page 37
Specified Limits Percent of total

Area within the
Specified limits
X + 0.6745 σ 50.00
X + σ 68.26
X +2σ 95
X +3σ 99
Variations
 No Two objects are identical.
 When the Variations are small
 It may appear that items are identical.
 Four Sources Of Variation:
 Process, Materials, Operators & Miscellaneous factors.
Types of Variations
 Assignable causes of Variation
 Chance (Random ) Cause of Variation
Control Charts
 A graph that establishes control limits of a process
 Control limits
 upper and lower bands of a control chart
Types of charts
 Attributes
 p-chart
 c-chart
 µchart
 Variables
 range (R-chart)
 mean (x bar – chart)
Page 38
Where to Use Control Charts

 Process has a tendency to go out of control
 Process is particularly harmful and costly if it goes out of control
What Does a Control Chart Do?
 Focuses attention on detecting and monitoring process variation over time;

 Distinguishes special from common causes of variation, as a guide to local or
management action;
 Serves as a tool for ongoing control of a process;
 Helps improve a process to perform consistently and predictably for higher
quality, lower cost, and higher effective capacity;
 Provides a common language for discussing process performance.
Six Sigma Concept
 It is methodology provides the techniques and tools to improve the capability and reduce
defects in any process.
 Six sigma strives for perfection “It allows for only 3.4 defects per million opportunities
(or 99.999666 percent accuracy)”
 Developed by Bill Smith at Motorola in 1987
Six Sigma Definitions

• Business Definition
 A break through strategy to significantly improve customer satisfaction and
shareholder value by reducing variability in every aspect of business.
Project Phases Six Sigma Methodology
 Define
 Measure
 Analyse
 Improve
 Control
Benefits of Six Sigma:
 Generates sustained success

 Sets performance goal for everyone
 Enhances value for customers;
Page 39
UNIT IV TOOLS AND TECHNIQUES FOR QUALITY MANAGEMENT :
Quality functions development (QFD) – Benefits, Voice of customer, information organization,

House of quality (HOQ), building a HOQ, QFD process. Failure mode effect analysis (FMEA) –
requirements of reliability, failure rate, FMEA stages, design, process and documentation. Seven
Tools (old & new). Bench marking and POKA YOKE.
FMEA
 Failure Mode and Effects Analysis (FMEA) is a systematic team driven approach that
identifies potential failure modes in a system, product, or manufacturing / assembly
operation caused by either design or manufacturing / assembly process deficiencies.
 FMEA is a tool used to prevent problems from occurring.
Reliability Engineering is concerned with the design, Manufacture and assurance of

products having high reliability.
Types of FMEA
Stages of FMEA
1. Specifying Possibilities
2. Quantifying Risk
3. Correcting High Risk Causes
4. Re- Evaluation of Risk.
Page 40
FMEA Document
FMEA Number
Item
Designing Responsibility
Prepared by
Model Number / Year
Key Date
FMEA date
Core Team
Item / Function
Potential Failure Mode
Potential Effects of Failure
Severity
Classification (CLASS)
Potential Causes / Mechanism of
Failure
Occurrence
Current design Controls
Detection
RPN
Recommended actions
Responsibility
Target Completion date
Actions taken
Process FMEA
 It is similar to design FMEA.

 Analytical technique utilized by a Manufacturing Responsible Engineering Team
 It is the means to address the potential failure modes and their associated causes.
 It includes all the concerns from all the involved teams.
 Helps to overcome the weakness in the process.
Benefits of FMEA
1. Having a systematic review of the component failure modes.

2. Determining the effects of failures
3. Determine those parts of the product or the process whose failure will have critical effects
on product or process.
4. Calculating the probabilities of failure in assemblies, subassemblies, products and
processes.
5. Establishing test program requirements to determine failure mode.
6. Establishing test program requirements to verify the empirical reliability predictions.
Page 41
QUALITY FUNCTION DEPLOYMENT
• It is the Systematic & Organized approach of taking customer needs and demands
into consideration while designing new products and services.
• It focuses on the “Voice of the Customer”, It is otherwise called as the “Customer
Driven Engineering”
• It translates the voice of customer into the technical and functional requirements
at every stage of the design and manufacture.
Definition
• “A system for translating consumer requirements into appropriate requirements at

every stage from research through product design and development , to
manufacture , distribution , installation and marketing, sales and service.”
Objectives of QFD
• To identify the voice of customer and than use the technical knowledge to develop
products which satisfy customers .
• To help the organization and analysis of all the information associated with the project.
House of Quality
Basic Structure of House of Quality
– Customer requirements .
– Prioritized Customer requirements
– Technical Descriptors
– Relationship Matrix
– Trade off Matrix
– Prioritized Technical Descriptors
QFD Methodology :
• Step 1: List of customer Requirements (WHAT s)

• Step 2 : List of Technical Descriptors (HOW s)
• Step 3 : Develop a relationship Matrix Between What’s and How’s
• Step 4: Develop an interrelationship Matrix between HOW ’s
• Step 5: Competitive Assessments
• Step 6: Develop Prioritized Customer requirements
• Step 7: Develop Prioritized Technical Descriptors
Page 42
House of quality helps in analyzing

– Customer requirement
– How does it relate to the proposed new product
– Competitive product compare to that of the input and output requirements.
QFD Process .
• Quality Function Deployment (QFD) is a Requirements Engineering approach that

focuses on quality. It was originated in Japan in the manufacturing industry. It is a means
of producing technical requirements from the customer requirements in the production
and development of a product. The main focus of attention in QFD is the House of
Quality (HOQ) in group sessions.
• QFD is made up of four different phases that depend on each other, i.e. iterations:
Product Planning, Parts Deployment, Process and Control Planning, and Production
Planning.
Page 43
 Product Planning
 Part Development
 Process Planning
 Production Planning
Benefits of QFD
• Improved communication and sharing of information within a cross-functional team

charged with developing a new product.
– marketing, sales, service, distribution, product engineering, process engineering,
procurement, and production
• Identification of ‘Loopholes' in the current knowledge of the design team
• Support for understanding, consensus, and decision making, especially when complex
relationships and trade-offs are involved
• Creation of an informational base which is valuable for repeated cycles of product
improvement
Benchmarking
Introduction
• Benchmarking is the process of identifying "best practice" in relation to both products

(including) and the processes by which those products are created and delivered.
• The objective of benchmarking is to understand and evaluate the current position of a

business or organization in relation to "best practice" and to identify areas and means of
performance improvement.
Definition
• American Productivity and Quality Center has defined the benchmarking as “the process
of identifying, understanding, and adopting outstanding practices and process from the
organization anywhere in the world to an organization to improve its performance.”
Page 44
Type
Strategic
Benchmarking
Functional
Benchmarking
Performance or Competitive Benchmarking
Process Benchmarking
Internal Benchmarking
External Benchmarking
International Benchmarking
Benchmarking Process
• There are five phases of benchmarking process

– Planning
– Analysis
– Integration
– Action
– Maturity.
Planning:
Step 1: what to be benchmarked ?

Step 2 : To whom or what shall we compare.
Step 3 : Determine data collection method and collect data.
Analysis
Step 4 : Determine the current performance gap

Step 5 : Project performance Levels:
Integration:
Step 6 : Communicate benchmark findings and gain acceptance

Step 7 : Establish functional goals
Action
Step 8 : Develop action plans

Step 9 :Implement specific actions and monitor the progress.
Page 45
Step 10 :
Recalibrate benchmarks
Maturity
Step 11 : Attain the leadership position

Step 12 : Integrate practices into process.
Benefits of Benchmarking
• Self assessment
• Accelerated growth rate
• Yield improvement
• Productivity enhancement
• Higher or improved return on investment
• Creating culture that values continuous improvement to achieve excellence
• Sharing best practices between the benchmarking partners
Pitfalls of Benchmarking
• It needs lots of commitment to succeed.

• Time consuming and expensive
• Comparing performance and process with “Best in Class” is important and should be
done on “Continuous basis”
Poka - Yoke
• It is Japanese word, it means “mistake Proofing” or fail-safing"

Shigeo Shingo defines Poka Yoke
• Poka : “Inadvertent Mistake that anyone can make”
• Yoke :”To prevent or Proof ”
Types of Errors
• Processing Errors
• Setup error
• Missing part.
• Improper Part / item
• Operation error
• Measurement error
Page 46
Poka Yoke Approaches
Prevention based Poka Yoke
• Control Method
• Warning Method
Detection based Poka Yoke
There are three categories of detection based Poka Yoke
• Contact Method :
• Fixed Value Method :
• Motion Step Method
APICS Definition of Lean Manufacturing

“A philosophy of production that emphasizes the minimization of the amount of all the
resources (including time) used in the various activities of the enterprise. It involves:
– … identifying and eliminating non-value-adding activities,
– … employing teams of multi-skilled workers,
– … using highly flexible, automated machines”
Types of Waste
• overproduction
• inventory
• waiting
• motion
• transportation
• re-work
• over-processing
Seven Statistical Tools (Q7 Tools)
• Prof. Ishikawa proposed seven elemental (Q7) tools based on statistical tools
• It helps to facilitate successful accomplishments of quality improvement objectives.
• Seven tools of quality are :
1. Check Sheets
2. Cause & Effects diagrams
3. Stratification analysis.
4. Control charts
5. Histograms
6. Pareto diagram
7. Scatter diagram
Page 47
Check sheets
• Check sheet also known as tally sheet, is a form for systematic data gathering and
registering to get a clear view of the facts.
• It helps to indicate the frequency of a certain occurrence.
Histogram
• Histogram is a bar diagram showing a distribution of variable quantities or

characteristics.
• It is graphical display of the frequency distribution of the numerical data.
• It is displayed as a series of rectangles of equal width and varying heights.
Types of Histogram
Cause and Effect diagram
• It is graphical tabular chart to list and analyze the potential causes of a given problem.
• It is also called as ……………….
• It consist of the central stem leading to the effect with multiple branches coming off the
stem listing the various groups of possible causes of the problem.
Pareto Diagram
• It is diagnostic tool commonly used for separating the vital few causes that account for a
dominant share of quality loss.
• It was named after …….. (Italian economist)
Page 48
• It is based on the Pareto principle which states that a few of the defects accounts for the
most of the effects.
• Pareto analysis is also called as …….rule and …. Analysis. It means 20 % of problems
defects account for the 80 % of the effects.
Stratification Analysis
• It is method of analysis of data by grouping it in different ways.

• Stratification means segregating a group of measurements, observations or any other data
into several sub groups on the basis of certain characteristics.
• It is simple very effective quality control tool for improving the quality.
Scatter Diagram
• To depict the relationship between two variables.

• This diagram displays the paired data as a cloud of points.
• It consist of horizontal axis containing the measured values of one variable
i.e (Cause) and other variable could be the effects.
Control charts
• It was invented by Walter A. Shewhart is the most widely used tool in SPC.
• It displays data taken over time and variation of data.
• It consist of the horizontal lines
– CL
– LCL
– UCL.
New Seven Management Tools
1. Affinity Diagram
2. Relationship Diagram
3. Tree diagram
4. Matrix Diagram
5. PDPC (Process Decision Programme chart)
6. Arrow Diagram
7. Matrix Data analysis diagram.
Affinity Diagram
• “ It is tool to collect to large amount of verbal expression and organize them in groups
according to natural relationships between individuals items ” .
• It is referred as “ KJ diagram “. After inventor Jiro Kawakita.
Page 49
Relationship Diagram
• It is tool finding out causes to a problem.

• It not only clarifies the relationship between causes and effect but also between the
various causes.
• It is graphical representation of all factors in a complicated problem , system or situation.
Tree diagram
• It is systematically breaks down a topic into its components elements and show the
logical and sequential links between these elements
• It helps to develop a systematic , step by step , strategy to achieve an objective.
Matrix Diagram
• It is tool that is used to systematically organize information that must be compared on a

variety of characteristics in order to make a comparison, selection or choice.
• It is referred to as ‘Quality table’
PDPC (Process Decision Programme chart)
• It is also known as the decision tree, is a planning tools to outline every conceivable and
likely occurrence in any planning.
• It focuses on what can go wrong with one’s plan.
• It helps to anticipate undesirable occurrences.
Arrow Diagram
• It is graphic description of sequential steps that must be completed.

• The PERT (Program Evaluation and Review Technique) and CPM (Critical Path
Method) are the best known arrow diagram.
• It is planning tools that determine critical path of process or a project.
Matrix data analysis diagram
• It is very much similar to that of the matrix diagram with a difference that numerical data
is used instead of symbols indicating the existence and strength of relationship
• The only tools among the “New seven Management tools” which uses numerical data
and produces numerical results.
Page 50
UNIT V QUALITY SYSTEMS ORGANIZING AND IMPLEMENTATION:
Introduction to IS/ISO 9004:2000 – quality management systems – guidelines for performance

improvements. Quality Audits. TQM culture, Leadership – quality council, employee involvement,
motivation, empowerment, recognition and reward - TQM framework, benefits, awareness and
obstacles.
TQM Culture
It is advocating a total commitment to customer satisfaction through continuous
improvement and innovation in all aspects of the business.
TQM Axioms
• Commitment :
• Scientific Knowledge:
• Involvement
Incorporating the three TQM Axioms:

• , we can define the TQM as below
– “TQM is a culture ; inherent in this culture is a total commitment to quality and

an attitude expressed by everybody’s involvement in the process of continuous
improvement of products and services, through the use of innovative scientific
methods.”
Leadership
Leadership is the process of influencing others towards the accomplishment of
goals . Leader triggers the will to do , show the direction and guide the group members
towards the accomplishment of the company’s goals.
• Peter Drucker , the eminent management thinker and write quotes
Page 51
• “Leadership is lifting of man’s visions to higher sights , the raising of man’s performance
to higher standard, the building of man’s personality beyond its normal limitations. ”
Characteristics of Quality Leaders

• Priority attention to the internal and external customers and their needs. Leaders place
themselves in the customers shoes and services their needs.
• Empower rather than control, subordinates.
• Emphasize improvement rather than maintenance
• Emphasize on prevention
Role of Senior Management

• To study and investigate the TQM concepts and issues.
• To set clear quality policies and provide challenging task.
• To establish “Priority of quality” and “Customer satisfaction” as the basic policy

and determine the long term goals.
Quality Council
• A Quality Council is a team to provide overall direction for achieving the total quality
culture.
Duties of Quality council

• To establish the core values and quality statements
• To establish the strategic long term plan with goals and annual quality improvement
program with objectives.
• To plan the training and education programmes.
Responsibilities of Quality council

• To develop two way trust
• To propose team requirements to the council
• To share council expectations with the team.
• To empower the team
• To brief the council on team progress.
Quality Management Systems

• The essence of the number of “quality” definitions is
Page 52
– to provide company’s operating system which promote conformance to

specifications.
ISO defined the term quality system

“The quality system are the organizational structure, responsibilities, procedures, process and
resources for implementing quality management”
• The system is well understood and effective.
• The products or services actually do satisfy customer expectations.
The emphasis is placed on problem- prevention rather than dependence on detection, after
occurrence
• How – methods and process description
• Who – responsibilities and authorities
• When – records and evidence
• Where – identification and traceability
Elements of a Quality Management System

• Organizational Structure
• Responsibilities
• Methods
• Data Management
• Processes
• Resources
• Customer Satisfaction
• Continuous Improvement
• Monitoring
• Product Quality.
Reasons for implementing a Quality Systems

• Improve employee involvement
• Improve house keeping
• Improve decision making based on facts and data
• Improved customer satisfaction
Page 53
• Improved safe working
• Reduced customer complaints
• Reduced inspection efforts
• Reduced quality cost.
ISO
• It was established in 1946 in Geneva, Switzerland.
• An association of National Standards Bodies of more than 150 Countries.
• The primary objective of ISO is coordination and unification of international standards.
• ISO has developed over 18 000 International Standards on a variety of subjects and some
1100 new ISO standards are published every year.
• It employs a system of technical committees, sub committees and working groups to

develop international standards, It permits other international organization that develop
standards to participate in its work by accepting them as liaison members
• BIS is the national standards body of India represented on ISO.
ISO 9001 is for quality management.

• Quality refers to all those features of a product (or service) which are required by the
customer.
• Quality management means what the organization does to
• ensure that its products or services satisfy the customer's quality requirements
and
• comply with any regulations applicable to those products or services.
Generic Standards
 No matter what the organization's scope of activity
• if it wants to establish a quality management system, ISO 9001 gives the essential
features
• or if it wants to establish an environmental management system,
Page 54
Who is responsible for developing ISO standards

• ISO technical committee and sub committee are responsible for the development of the
standards.
• The work is conducted on the basis of consensus among quality and industry experts
nominated by the national standards
• QMS should be a strategic decision of an organization
• Design & Implementation
• Business
• Environment,
• Changes in that environment, or
• Risks associated with that environment;
• Its varying needs; its particular objectives;
• Products it provides;
• The processes it employs;
• Its size and
• Organizational structure
Process approach
• To identify and manage numerous linked activities
• Ongoing control that it provides over the linkage between the individual processes within
the system of processes
a) understanding and meeting requirements,

b) the need to consider processes in terms of added value,
c) obtaining results of process performance and effectiveness, and
d) continual improvement of processes based on objective measurement.
Page 55
ISO 9000:2005 Quality management systems -- Fundamentals and vocabulary
ISO 9004:2000 Quality management systems -- Guidelines for performance

improvements
ISO 10002:2004 Quality management -- Customer satisfaction -- Guidelines for

complaints handling in organizations
ISO 10005:2005 Quality management systems -- Guidelines for quality plans
ISO 9004 : 2000

• International Standard provides guidelines beyond the requirements given in ISO 9001
• Both the effectiveness and efficiency of a quality management system,
• Potential for improvement of the performance of an organization. When compared to ISO

9001,
• The objectives of customer satisfaction and product quality are extended
– satisfaction of interested parties
– performance of the organization.
• International Standard is applicable to
– the processes of the organization
– quality management principles
– The achievement of ongoing improvement, measured through the satisfaction of

customers and other interested parties.
• International Standard consists of guidance and recommendations
• ISO 9004 has been developed to maintain consistency with ISO 9001
Page 56
• ISO 9001 specifies requirements for a QMS
Where should ISO 9004 be positioned ?

 As an introductory guidance ‘textbook’ ?
 As a direct guide to ISO 9001 ?
 As a higher level set of certification requirements than ISO 9001 (a competitor to the
quality awards programmes ) ?
 As a guide on ‘quality management’ or ‘business excellence’ ?
Relationship ISO 9001/ISO 9004
A “consistent pair” of standards, but each capable of being used on its own
 Allows for ready transition between the two standards
 Harmonized main clause titles, structures and terminology
Based on 8 “Quality Management Principles” “Process Approach”
Process-based structure
Management responsibility
Policy, objectives, planning, system, review
Resource management
Human resources, information, facilities
Product realization
Customer, design, purchasing, production, calibration
Measurement, analysis and improvement
Audit, process/product control, improvement
Page 57
Basic process model
MANAGEMENT
CUSTOMER DESIRED CUSTOMER

ACTIVITIES SATISFACTION
INPUTS OUTPUTS
ENABLERS
Documentation
• One of the goals of the ISO based Management System standards is to bring control and
consistency to your processes.
• The standards ask you to identify your key processes, and manage and improve those
processes.
• Documentation is one of the ways you manage and control your processes. By writing
procedures and work instructions you will make sure that everyone is performing the
process the same way.
• ISO documentation typically comprises four tiers. Each tier should point to the next.
Page 58
Documentation Pyramid
Policy
Procedures
WI & Practices
Records & Proofs
Benefits of TQM
Tangible Benefits Intangible Benefits
Improved Product Quality Improved Employee Participation
Improved Productivity Improved team work

Reduced quality costs Improved Working relationships
Page 59
Increased market and customers Improved Customer satisfaction
Increased profitability Better company image
Reduced employee grievances Enhancement of job interest
Enhanced problem solving capacity
Obstacles to TQM
• Lack of Management commitment
• Inability to change organizational culture
• Improper Planning
• Lack of continuous training and Education
• Incompatible organizational structure and isolated individuals and departments
• Ineffective measurement techniques and lack of access to data and results
• Paying inadequate attention to internal and external customers
• Inadequate use of empowerment and teamwork
• Failure to continually improve
Frame Work of TQM
Page 60
Page 61

Ba5107 TQM Study Material22

Uploaded by

Copyright:

Available Formats

Ba5107 TQM Study Material22

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Ba5107 TQM Study Material22

Uploaded by

Copyright:

Available Formats

DEPARTMENT OF MANAGEMENT STUDIES

BA 5107: TOTAL QUALITY MANAGEMENT

Quality can be quantified as follows

Total Quality Management (TQM)- Definitions

Indian Statistical Institute –

6 Basic Concepts of TQM

Quality perspectives / Dimensions of Quality

At organizational level, we need to ask following questions:

– Willingness or readiness to help and provide prompt service

Total Quality Control

Statistical Quality Control

Three elements of quality statements.

Eg Mission statement of ITC ltd:

Quality Policy Statement

Quality cost is the cost of poor products or services.

 Marketing / Customer/ User

 Purchasing Appraisal Cost

Internal Failure Cost :

“Cost arise due to internal failures.”

 Product or Service Design Failure Cost:

External Failure Cost

Quality Improvement Strategy:

Quality cost report

Characteristic of Trend Analysis

It is method of classifying items, events or activities according to the relative importance.

Construction of the Pareto Diagram

Customer is the King.

Customer satisfaction must be the primary goal of any organization , therefore it is

Customer satisfaction Model:

Customer satisfaction is not an objective but a feeling or attitude. Since it is subjective it

Customer Satisfaction Model – Teboul

1. The most important people in the business

“Didn’t know I Satisfaction

1. The customers inside the organization

The customers outside the organization.

 Uses the product or service

Customer Supplier Chain:

Internal Customer – Supplier Chain

Customer Satisfaction analysis helps the organization in the following ways:

 A totally satisfied customer contributes to revenue of the company.

 A totally dissatisfied customer decrease revenue

Customer feedback is required for the following reasons

1. To discover customer dissatisfaction

Tools of Customer Complaints:

UNIT II PRINCIPLES AND PHILOSOPHIES OF QUALITY MANAGEMENT:

DEMING CONTRIBUTIONS AND PRINCIPLES

1. Create and publish the Aims and Purpose of the organization

2.Learn the new philosophy

3.Understand the purpose of inspection

4.Stop awarding business based on price alone.

5.Improve constantly and forever the system

7.Teach and Institute Leadership

9.Optimize the efforts of Teams, Groups, and Staff areas.

10.Eliminate Exhortations for work force

11.a Eliminate numerical quotas for the work force.

11.b. Eliminate Management by objective

12.Remove Barriers that rob people of pride of workmanship

13. Encourage Education and self improvement for everyone