TOTAL QUALITY MANAGEMENT

INTRODUCTION TO QUALITY MANAGEMENT

CONTENT

TOTAL QUALITY MANAGEMENT QUALITY DEFINITION TQM FRAMEWORK-BENEFITS,AWARENESS &OBSTACLES 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

TOTAL QUALITY MANAGEMENT

Total Quality Management (TQM) is an enhancement to the traditional way of doing business.
o Total o Quality - Made up of the whole - Degree of Excellence a Product or Service provides o Management - Art of handling, controlling, directing etc.

QUALITY definition
According to DEMING, Quality may be

defined as an excellent product or

services that fulfills or exceeds our

expectations.

Quality can be quantified as :

Q = P/E
Where,
Q = Quality P = Performance E = Expectation

TQM FRAMEWORK

BENEFITS OF TQM
Increases

Efficiency.

Encourages Improves

Customer Satisfaction.

Organizational Development.

Flexibility.
Promotes

Supplier/Customer Satisfaction.
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TQM OBSTACLES

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 customer. Inadequate use of empowerment and teamwork. Failure to continually improve.

QUALITY STATEMENTS
Quality Statements includes:
o Vision. o Mission. o Quality policy statement.

VISION STATEMENT
The Vision statement is a short declaration of what an organization aspires to be tomorrow. It is the ideal statement that might never be reached but which we continually strive to achieve. Eg : To become the world's leading consumer company for automotive products and services FORD MOTOR COMPANY
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MISSION STATEMENT
The mission statement answers the following questions :
o Who we are? o Who are the customers? o What we do? o How do we do it ?

This statement is usually one paragraph or less in length,is easy to understand, and describes the function of the organization.

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Eg : Our mission is to improve continually our products and services to meet our customers needs, allowing us to prosper as a business and to provide a reasonable return to our shareholders, the owners of our business FORD MOTOR COMPANY

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QUALITY POLICY STATEMENT

This statement serves as a guide for everyone in the organization. It clarifies the employee about how the product and services must be provided to the customer.

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CUSTOMER
There are two distinct types of customers. o External customer. o Internal customer.

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EXTERNAL CUSTOMER
An external customer who exists outside the organization. An external customer can be defined in many ways, such as
o The one who use the product or service. o The one who purchases the product or service. o The one who influences the sale of the product or service.

Eg: Black Thunder's determined the customer to be the children when they introduced their theme park. The children never paid for their enjoyment but the children influenced the sale.
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INTERNAL CUSTOMER
An internal customer who exists within the organization. Every function, whether it is engineering, order processing, or production, has an internal customereach receives a product or service, in exchange, provides a product or service.

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CUSTOMER FOCUS TO QUALITY MANAGEMNT

The customers are the valuable assets for any organization. The success of an organization depends on the satisfied customer. The satisfied customer tends to purchase frequently and more. The manufacturing and service organization use customer satisfaction as the measure of quality. Identifying the customer expectation is the key to satisfy the customer.
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CUSTOMER PERCEPTION OF QUALITY

An American Society for Quality (ASQ) survey on end user perceptions of important factors that influenced purchases showed the following ranking:
o Performance. o Feature. o Service. o Warranty. o Price. o Reputation.
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TRANSLATING NEEDS INTO REQUIREMNTS

Translating

needs into requirements is another vital part of the quality management. Requirements management is concerned with meeting the needs of end users through identifying and specifying what they need.
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Requirements may be focused on outcomes where the main concern is to describe what is wanted rather than how it should be delivered or requirements may be described in any way between have an adequate understanding of what the users need and how the market is likely to meet that need.

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CUSTOMER RETENTION
It means retaining the customer to support the business. It is more powerful and effective than customer satisfaction. For Customer Retention, we need to have both Customer satisfaction & Customer loyalty.

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The following steps are important for customer retention

Top management commitment to the customer satisfaction. Identify and understand the customers what they like and dislike about the organization. Develop standards of quality service and performance. Recruit, train and reward good staff.

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Always stay in touch with customer. Work towards continuous improvement of customer service and customer retention. Reward service accomplishments by the front-line staff. Customer Retention moves customer satisfaction to the next level by determining what is truly important to the customers.

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 Customer

satisfaction is the connection between customer satisfaction and bottom line.

Customer may be satisfied with high priced product but end up in equivalent superior product. Customer Retention is possible only when company truly understands what the customer expects from product and the company. The satisfaction level results in customer retention with improve loyalty of customer towards product and bring profit by bringing new customers.
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DIMENSIONS OF PRODUCT AND SERVICE QUALITY

PRODUCT QUALITY: Product quality has two dimensions: Physical dimension. Performance dimension. SERVICE QUALITY : Service quality has several dimensions: Responsiveness. Assurance Tangibles
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 Empathy. Reliability.

The quality of products and services can be measured by these dimensions. Evaluating all dimensions of a product or service helps to determine how well the service stacks up against meeting the customer requirements.
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COST OF QUALITY
Cost of Quality is the amount of money a business loses because its product or service was not done right in the right place (or) the cost associated in providing poor quality product and services is known as Cost of Quality (or) Cost of Quality are defined as those costs associated with the non-achievement of product or service quality as defined by requirements established by the organization and its contracts with customers and society.

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The four categories of Quality cost includes:

Internal failure cost. External failure cost. Appraisal cost. Prevention cost.

Prof. Sushil\IITD\Session - I

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