Introduction

By
Dr. Chandravadan
+91 9324304832 (India)
researchbychandra@gmail.com

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 1.1 Commonly used definitions

• TQM:
An integrated effort designed to improve quality performance at every
level of the organisation.
• Customer-defined quality:
The meaning of quality as defined by customers.

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 Defining Quality
• The definition of quality depends on the role of the people defining it.
Most consumers have a difficult time defining quality, but they know
it when they see it.
Some of the more common definitions of quality are:
• Conformance to specifications
• Fitness for use
• Value for price paid
• Support services
• Psychological criteria
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1.2 History
• 1910: FW Taylor Principle of • 1960: Kaoru Ishikawa: Introduced 7
Scientific Management tools of Quality
• 1920: Walter Shewhart: SPC & use • Quality Circles by Ishikawa
• 1948: ASQC formed. Later ASQ • 1979: Philip Crosby published”
• 1950: Quality is Free
• QM developed in Japan • 1986: Motorola Introduced 6 Sigma
• Fiegenbaum: Concept of Quality • 1987: ISO 9001
Cost • 1988: Malcolm Baldrige National
• Joseph JuranQC handbook Quality Award
published • 1991: Europeon Foundation for
• Deming: Trained Japanese Engineer Quality Management
in SPC • ISO 9001: ISO 9001 4th Issue
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1.3 The Evolution of Total Quality
Management(TQM)
Early 1980s and
1940s 1960s
1900s Beyond

Statistical Organizational
Inspection sampling quality focus Customer
driven quality

Old Concept of Quality: Inspect for quality after New Concept of Quality: Build quality
production. into the process. Identify and correct
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• Inspection:
• To salvage
• Sorting, grading, reblending
• Corrective Actions
• Identify Sources of Non-
conformance
• Quality Control:
• Develop Quality Manual
• Self-Inspection
• Product Testing
• Basic Quality Planning
• Use of Basic Statistics
• Paperwork Controls
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• Quality Assurance
• Advanced Quality Planning
• Quality Systems Development
• Focus on Design
• Quality Costs
• Failure Mode and Effects Analysis
• Statistical Process Control
• Total Quality Management
• Policy Deployment
• Involve Suppliers and Customers
• Involve all operations
• Process Management
• Performance Measurement
• Teamwork
• Employee involvement and
development
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Quality Assurance Quality Control
It is a process which deliberate on providing assurance that quality QC is a process which deliberates on fulfilling the
request will be achieved. quality request.
A QA aim is to prevent the defect. A QC aim is to identify and improve the defects.
QA is the technique of managing the quality. QC is method to verify the quality.
QA does not involve executing the program. QC always involves executing the program.
All team members are responsible for QA. Testing team is responsible for QC.
QA e.g. Verification. QC e.g. Validation.
QA means Planning for doing a process. QC Means Action for executing the planned process.
Statistical Technique used on QA is known as Statistical Process Statistical Technique used on QC is known as
Control (SPC.) Statistical Quality Control (SPC.)
QA makes sure you are doing the right things. QC makes sure the results of what you’ve done are
what you expected.
QA Defines standards and methodologies to followed in order to QC ensures that the standards are followed while
meet the customer requirements. working on the product.

QA is the process to create the deliverables. QC is the process to verify that deliverables.
QA is responsible for full software development life cycle. QC is responsible for software testing life cycle.

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1.4 Dimensions of product quality
management
• Performance: Performance refers to a product's primary operating characteristics. This dimension of quality involves
measurable attributes; brands can usually be ranked objectively on individual aspects of performance.
• Features: Features are additional characteristics that enhance the appeal of the product or service to the user.
• Reliability: Reliability is the likelihood that a product will not fail within a specific time period. This is a key element for
users who need the product to work without fail.
• Conformance: Conformance is the precision with which the product or service meets the specified standards.
• Durability: Durability measures the length of a product’s life. When the product can be repaired, estimating durability is
more complicated. The item will be used until it is no longer economical to operate it. This happens when the repair rate
and the associated costs increase significantly.
• Serviceability: Serviceability is the speed with which the product can be put into service when it breaks down, as well as
the competence and the behavior of the service person.
• Aesthetics: Aesthetics is the subjective dimension indicating the kind of response a user has to a product. It represents the
individual’s personal preference.
• Perceived Quality: Perceived Quality is the quality attributed to a good or service based on indirect measures.

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Dimensions of quality for manufacturing versus service
organisations
Manufacturing Organisations Service Organisations
Conformance to specifications Tangible factors
Performance Consistency
Reliability Responsiveness to customer needs
Features Courtesy/friendliness
Durability Timeliness/promptness
Serviceability Atmosphere

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 1.5 Components of TQM

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Put Customers First:

A quality product or service satisfies customer’s needs and expectations. Whether a product or
service is of high or low quality, will be decided by how it made the consumer feel and whether
consumer expectations were satisfied or exceeded. Customers can be put first through a variety of
initiatives including:
• Undertaking market research to discover consumer needs so that the organisation can develop
products and services that exceed their consumer's needs.
• Looking after all customers whether internal or external - Internal customers are employees of the
organisation and are known as customers when they approach each other for a service.
• Effective customer care systems - Customer care systems are all systems that support customer
service; they include customer advice, after sales support, product warranties and in store facilities
such as parent and baby rooms, shoe fitting services and waiting rooms.
• Ensuring that all service standards are met.
• Listening to customer views and opinions - Responding to customer views including resolving
customer complaints in a manner that satisfies their expectations.

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Make Continuous Improvement:
The Japanese term “Kaizen” has contributed to this component. Kaizen believes that there are no
limits to continuous improvement. This means that a TQM organisation will continuously strive to
improve their product/service and increase the quality standards.
Aim for Zero Defects:
Defects are expensive because they will lower the customer’s confidence in the product. Also it is
more expensive to rectify defects than it is to prevent them occurring in the first place. Zero defects
can be achieved through a combination of quality assurance and quality control.
Training and Development:
An organisation will need to train their employees to ensure that they understand the principles of
TQM. Any organisation employee will need to understand how TQM is to be achieved or maintained
and how they as an employee will ensure that the organisation emulates TQM.

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1.6 Involvement of other functions in TQM

• Marketing
• Finance
• Accounting
• Engineering
• Purchasing
• Human Resources
• Information Systems

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Marketing-

• It plays a critical role in the TQM process by providing key inputs that make TQM
a success. The goal of TQM is to satisfy customer needs by producing the exact
product that customers want.
• Marketing’s role is to understand the changing needs and wants of customers by
working closely with them.
• Sometimes apparently small differences in product features can result in large
differences in customer appeal.
• Marketing needs to accurately pass customer information along to operations,
and operations needs to include marketing in any planned product changes.

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Finance-
• It is another major participant in the TQM process because of the great cost
consequences of poor quality.
• General definitions of quality need to be translated into specific dollar terms.
• This serves as a baseline for monitoring the financial impact of quality efforts and can be
a great motivator.
• The first two costs, prevention and appraisal, are preventive costs; they are intended to
prevent internal and external failure costs.
• Not investing enough in preventive costs can result in failure costs, which can hurt the
company.
• On the other hand, investing too much in preventive costs may not yield added benefits.
Financial analysis of these costs is critical.
• You can see that finance plays a large role in evaluating and monitoring the financial
impact of managing the quality process.
• This includes costs related to preventing and eliminating defects, training employees,
reviewing new products, and all other quality efforts.
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Accounting-
• It is important in the TQM process because of the need for exact costing.
• TQM efforts cannot be accurately monitored and their financial contribution assessed if
the company does not have accurate costing methods.
Engineering-
• Engineering efforts are critical in TQM because of the need to properly translate
customer requirements into specific engineering terms.
• In developing quality function deployment(QFD), it was not easy to translate a customer
requirement such as “a good looking backpack” into specific terms such as materials,
weight, colour grade, size, and number of zippers.
• We depend on engineering to use general customer requirements in developing
technical specifications, identifying specific parts and materials needed, and identifying
equipment that should be used.

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Purchasing-
• It is another important part of the TQM process.
• Whereas marketing is busy identifying what the customers want and engineering is busy
translating that information into technical specifications, purchasing is responsible for acquiring
the materials needed to make the product.
• Purchasing must locate sources of supply, ensure that the parts and materials needed are of
sufficiently high quality, and negotiate a purchase price that meets the company’s budget as
identified by finance.

Information systems (IS)-

• It is highly important in TQM because of the increased need for information accessible to teams
throughout the organization.
• IS should work closely with a company’s TQM development program in order to understand
exactly the type of information system best suited for the firm, including the form of the data, the
summary statistics available, and the frequency of updating.

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Human Resources-
• It is critical to the effort to hire employees with the skills necessary to work in a TQM
environment.
• That environment includes a high degree of teamwork, cooperation, dedication, and
customer commitment.
• Human resources is also faced with challenges relating to reward and incentive systems.
• Rewards and incentives are different in TQM from those found in traditional
environments that focus on rewarding individuals rather than teams.

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 1.7 Developing Quality Culture
Maintaining a leadership emphasis on quality:
Even when executives have the best intentions, there are often gaps between what they say and
what they do. As a result, employees get mixed messages about whether quality is truly
important.
Ensuring message credibility:
Most companies energetically promote messages about the importance of quality—but
their efforts are wasted if the messages are not believed.
Encouraging peer involvement:
Fostering peer engagement is a delicate balancing act. If leaders become overly involved in
orchestration, then impact and authenticity suffer—but if they show too little support,
they miss important opportunities.
Increasing employee ownership and empowerment:
One of the defining traits of an organization with a true culture of quality is that employees
are free to apply judgment to situations that fall outside the rules.

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1.8 Why TQM efforts fail?

• The most important factor in the success or failure of TQM efforts is the genuineness of
the organization’s commitment. Often companies look at TQM as another business
change that must be implemented due to market pressure without really changing the
values of their organization.
• TQM is a complete philosophy that has to be embraced with true belief, not mere lip
service. Looking at TQM as a short-term financial investment is a sure recipe for failure.
• Another mistake is the view that the responsibility for quality and elimination of waste
lies with employees other than top management. It is a “let the workers do it” mentality.
• A third common mistake is over- or under-reliance on statistical process control (SPC)
methods. SPC is not a substitute for continuous improvement, team-work, and a change
in the organization’s belief system. However, SPC is a necessary tool for identifying
quality problems.

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Some common causes for TQM failure are
• Lack of a genuine quality culture
• Lack of top management support and commitment
• Over- and under-reliance on statistical process control (SPC) methods

Companies that have attained the benefits of TQM have created a quality culture.
These companies have developed processes for identifying customer-defined
quality. In addition, they have a systematic method for listening to their customers,
collecting and analyzing data pertaining to customer problems, and making
changes based on customer feedback. You can see that in these companies there is
a systematic process for prioritizing the customer needs that encompass the entire
organization.

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1.9 Cost of Quality
Quality has many costs, which can be divided into two categories.
• The first category consists of costs necessary for achieving high
quality, which are called quality control costs. These are of two types:
prevention costs and appraisal costs.
• The second category consists of the cost consequences of poor
quality, which are called quality failure costs. These include external
failure costs and internal failure costs.
• The first two costs are incurred in the hope of preventing the second
two.

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• Prevention costs are all costs • Appraisal costs are incurred in the
incurred in the process of process of uncovering defects.
preventing poor quality from
occurring.

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Internal failure costs are associated with discovering poor product quality before the
product reaches the customer site.
External failure costs are associated with quality problems that occur at the
customer site

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Prevention
• Costs of preparing and implementing a quality plan.
Cost

Appraisal
• Costs of testing, evaluating, and inspecting quality.
Cost

Internal
• Costs of scrap, rework, and material losses.
Failure Cost

• Costs of failure at customer site, including returns, repairs, and

External
Failure Cost
recalls.

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Cost of quality

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Cost of Defects

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Note:
External failure costs tend to be particularly high for service
organizations. The reason is that with a service the customer spends
much time in the service delivery system, and there are fewer
opportunities to correct defects than there are in manufacturing.
Examples of external failure in services include an airline that has
overbooked flights, long delays in airline service, and lost luggage.

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