UNIT - I

INTRODUCTION
 UNIT I

INTRODUCTION

 Introduction
 Need for quality
 Evolution of quality
 Definition of quality
 Dimensions of manufacturing and service quality
 Basic concepts of TQM
 Definition of TQM
 TQM Framework
 Contributions of Deming, Juran and Crosby
 Barriers to TQM.
 What is Quality?

Degree of excellence, or general

excellence (…has quality)
Attribute or faculty (…Has many
good qualities)
Relative nature, character, or
property
 Definitions of Quality-

Quality is conformance to requirements

or specifications (Crosby 1979)

Fitness for use (Juran 1988)

Degree to which a set of inherent

characteristics fulfills requirements (As
per ISO 9000:2000)
 Definitions of Quality-
Continued
• The American National Standards Institute
(ANSI) and the American Society for Quality
(ASQ) define quality as:
“The totality of features and characteristics of a
product or service that bears on its ability to
satisfy given needs.”
 Quality
• It is the degree to which a set of inherent characteristics
fulfills the requirements.
– Degree means that quality can be used with adjectives
like poor, good, and excellent.
– Inherent is defined as existing in something, especially as
a permanent characteristics.
– Characteristics can be quantitative or qualitative
– Requirement is a need or expectation that is stated;
generally implied by the organization, its customers, and
other interested parties. Or obligatory.
Quality can be quantified as Q = P / E
where Q = Quality,
P = Performance and
E = Expectation
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 Why Quality?

Reasons for quality becoming a cardinal priority for most

organizations:
• Competition – Today’s market demand high quality products
at low cost. Having `high quality’ reputation is not enough!
Internal cost of maintaining the reputation should be less.
• Changing customer – The new customer is not only
commanding priority based on volume but is more demanding
about the “quality system.”
• Changing product mix – The shift from low volume, high
price to high volume, low price have resulted in a need to
reduce the internal cost of poor quality.
 Why Quality?
• Product complexity – As systems have become more complex,
the reliability requirements for suppliers of components have
become more stringent.
• Higher levels of customer satisfaction – Higher customers
expectations are getting spawned by increasing competition.

Relatively simpler approaches to quality viz. product inspection

for quality control and incorporation of internal cost of poor
quality into the selling price, might not work for today’s
complex market environment.
 Total Quality Management
• TQM is an enhancement to the traditional way of doing business. It is a
proven technique to guarantee survival in world class competition. Only
by changing the actions of management will the culture and actions of an
entire organization be transformed.

– Total : Made up of the whole

– Quality : Degree of excellence a product or service provides
– Management : Act, art or manner of handling , controlling ,directing
etc.
So TQM is the art of managing the whole to achieve excellence. It is both a
philosophy and a set of guiding principles that represent the foundation
of continuously improving the organization. It is the application of
quantitative methods and human resources to improve all the processes
within the organization and exceed customer needs now and in the near
future.

• TQM integrates fundamental management techniques, existing

improvement efforts, and technical tools
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under a disciplined approach.
 Why TQM?
Ford Motor Company had operating losses of
$3.3 billion between 1980 and 1982.
Xerox market share dropped from 93% in
1971 to 40% in 1981.
Attention to quality was seen as a way to
combat the competition.
 Why TQM?
Ford Motor Company had operating losses of
$3.3 billion between 1980 and 1982.
Xerox market share dropped from 93% in
1971 to 40% in 1981.
Attention to quality was seen as a way to
combat the competition.
 Quality?
• Quality is not fine-tuning your product at the
final stage of manufacturing,before packaging
and shipping .
• Quality is in-built into the product at every
stage from conceiving –specification & design
stages to prototyping –testing and manufacturing
stages.
• TQM philosophy and guiding principles
continuously improve the Organisation
processes and result in customer satisfaction.
 TQM Evolution

• Custom-built Articles/Products having considerable

control over Quality.

• Mass- Produced Products with less control over

Quality

• Quality control Department in Factories.

• TQM-based Production facility – enhancing the

Organization through Quality techniques to better
achieve organization’s goals-eg. Productivity and
Profitability with min.wastage.
• ISO Quality Management Systems.
 QUALITY IS ….the
QUALIFIER!

• Doing it right first time and all the

time. This boosts Customer
satisfaction immensely and increases
efficiency of the Business operations.
• Clearing the bar (ie. Specification or
Standard stipulated) Excellence that is
better than a minimum standard.
What does TQM mean?
Total Quality Management means that the
organization's culture is defined by and
supports the constant attainment of
customer satisfaction through an integrated
system of tools, techniques, and training.
This involves the continuous improvement
of organizational processes, resulting in
high quality products and services.
 What’s the goal of TQM?

“Do the right things right the first

time, every time.”
 Another way to put it
• At it’s simplest, TQM is all managers
leading and facilitating all contributors in
everyone’s two main objectives:

(1) total client satisfaction through

quality products and services; and
(2) continuous improvements to
processes, systems, people, suppliers,
partners, products, and services.
 Productivity and TQM
• Traditional view:
– Quality cannot be improved without significant
losses in productivity.
• TQM view:
– Improved quality leads to improved productivity.
 Basic Tenets of TQM
• 1. The customer makes the ultimate
determination of quality.
• 2. Top management must provide leadership
and support for all quality initiatives.
• 3. Preventing variability is the key to
producing high quality.
• 4. Quality goals are a moving target, thereby
requiring a commitment toward continuous
improvement.
• 5. Improving quality requires the
establishment of effective metrics. We must
speak with data and facts not just opinions.
The three aspects of TQM

Counting Tools, techniques, and training in their

use for analyzing, understanding, and
solving quality problems

Customers Quality for the customer as a

driving force and central concern.

Culture Shared values and beliefs, expressed

by leaders, that define and support
quality.
 Introduction
• What is a customer?
Anyone who is impacted by the product or process delivered by
an organization.
External customer: The end user as well as intermediate
processors. Other external customers may not be purchasers
but may have some connection with the product.
Internal customer: Other divisions of the company that receive
the processed product.

• What is a product?
The output of the process carried out by the organization. It may
be goods (e.g. automobiles, missile), software (e.g. a computer
code, a report) or service (e.g. banking, insurance)
 Introduction to dimensions of quality
• How is customer satisfaction achieved?
Two dimensions: Product features and Freedom from
deficiencies.
• Product features – Refers to quality of design.
Examples in manufacturing industry: Performance, Reliability,
Durability, Ease of use, Esthetics etc.
Examples in service industry: Accuracy, Timeliness, Friendliness
and courtesy, Knowledge of server etc.
• Freedom from deficiencies – Refers to quality of conformance.
Higher conformance means fewer complaints and increased
customer satisfaction.
 Dimensions of Quality-
Continued
Transcendent definition: excellence
Product-based definition: quantities
of product attributes
User-based definition: fitness for
intended use
Value-based definition: quality vs.
price
Manufacturing-based definition:
conformance to specifications
 Quality and customer
expectations
• Quality is also defined as excellence in
the product or service that fulfills or
exceeds the expectations of the
customer.
• There are 9 dimensions of quality that
may be found in products that produce
customer-satisfaction.
• Though quality is an abstract perception,it
has a quantitative measure- Q= (P / E ) ,
where Q=quality, P= performance(as
measured by the Mfgr.), and E =
expectations( of the customer).
 The 9 Dimensions of Quality

• Performance
• Features Performance
• Conformance
• -----------------------------
• Reliability
• Durability
• Service Cost
• -----------------------------
• Response- of Dealer/ Mfgr. to Service Features
Customer
• Aesthetics – of product
• Reputation- of Mfgr./Dealer
 The Dimensions of Quality
DIMENSION MEANING
Performance Primary product characteristics
Features Secondary characteristics
Conformance Meeting specifications or industry standards
Reliability Consistency of performance over time
Durability Useful life
Service Resolution of problems and complaints
Response Human-to-human interface
Aesthetics Sensory characteristics
Reputation Past performance and other intangibles
 Value-based Approach
• Manufacturing • Service Dimensions
Dimensions – Reliability
– Performance – Responsiveness
– Features – Assurance
– Reliability – Empathy
– Conformance – Tangibles
– Durability
– Serviceability
– Aesthetics
– Perceived quality
 Total Quality Management
Total Quality Management is the application of
quantitative methods and human resources to improve
all the processes within an organization and exceed
customer needs now and in the future.
TQM has 6 basic concepts:
 Leadership
 Customer Satisfaction
 Employee Involvement
 Continuous Process Improvement
 Supplier Partnership
 Performance Measures

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 Basic concepts of TQM
• A committed and involved management to provide long term top-to-
bottom organizational support : LEADERSHIP

• An unwavering focus on the customer, both internally and externally :

CUSTOMER SATISFACTION

• Effective involvement and utilization of the entire work force :

EMPLOYEE INVOLVEMENT

• Continuous improvement of the business and production process :

CONTINUOUS PROCESS IMPROVEMENT

• Treating suppliers as partners : SUPPLIER PARTNERSHIP

• Establish performance measures for the processes : PERFORMANCE

MEASURES
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 Responsibility for Quality

Customer

Service Marketing
Quality
Packaging and Product Design
Storage Or Engineering
Service
Inspection
and Test Procurement

Process
Production Design
Responsibility for Quality
Marketing
 Help to evaluate the level of product quality that
a customer wants, needs…

Design Engineering
 Translate the customer’s requirements into
operating characteristics, exact specifications,
and appropriate tolerances

Procurement
 Responsible for procuring quality materials and
component
Responsibility for Quality
Process Design
 Develops processes and procedures that will
produce a quality product/service

Production
 Produce quality products and services

Inspection and Test

 Appraise the quality of purchased and
manufactured items and to report the results
 Responsibility for Quality
Packaging and Storage
 Preserve and protect the quality of the product

Inspection and Test

 Appraise the quality of purchased and manufactured
items and to report the results

Service
 Fully realizing the intended function of the product during
its expected life
 TQM Framework
• Gurus

– Principles and Practices

– Tools and techniques

– Product or Service realization

» Customer

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 Quality Gurus

• Deming: The father of the quality movement.

Scientific approach to quality
• Juran: Quality by design
• Crosby: Quality is free
 Gurus of TQM
• Walter A. Shewart Ph.D. : Control Chart Theory, PDSA Cycle

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 Gurus of TQM
• W. Edwards Deming Ph.D.: 14 points of
theory of management to improve quality,
productivity and competitive position

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 The Deming philosophy

• “A System of Profound Knowledge”

1. Appreciation for a system - A system is a set of functions or
activities within an organization that work together to
achieve organizational goals. Management’s job is to
optimize the system. (not parts of system, but the whole!).
System requires co-operation.
2. Psychology – The designers and implementers of decisions
are people. Hence understanding their psychology is
important.
 The Deming philosophy

3. Understanding process variation – A production process

contains many sources of variation. Reduction in variation
improves quality. Two types of variations- common causes
and special causes. Focus on the special causes. Common
causes can be reduced only by change of technology.
4. Theory of knowledge – Management decisions should be
driven by facts, data and justifiable theories. Don’t follow
the managements fads!
 The Deming Philosophy

• Create and publish the aims and purposes of the

organization
• Learn the new philosophy
• Understand the purpose of inspection
• Stop awarding business based on price alone.
• Improve constantly and forever the System
• Institute training
• Teach and institute leadership
The Deming Philosophy
• Drive out fear,create trust,and create a climate
for innovation
• Optimize the efforts of teams,groups,and staff
areas
• Eliminate exhortations for the work force
• Eliminate numerical quotas for the work force
• Eliminate management by objectives
• Remove barriers to pride of workmanship
• Encourage education and self-improvement for
all
• Take action to accomplish the transformation.
 Gurus of TQM
• Joseph M. Juran Ph.D. : Juran Trology

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 The Juran philosophy
• Pursue quality on two levels:
1. The mission of the firm as a whole is to achieve high product
quality.
2. The mission of each individual department is to achieve high
production quality.

• Quality should be talked about in a language senior

management understands: money (cost of poor quality).
• At operational level, focus should be on conformance to
specifications through elimination of defects- use of
statistical methods.
 The Juran philosophy

Quality Trilogy –
1. Quality planning: Process of preparing to meet quality goals.
Involves understanding customer needs and developing
product features.
2. Quality control: Process of meeting quality goals during
operations. Control parameters. Measuring the deviation and
taking action.
3. Quality improvement: Process for breaking through to
unprecedented levels of performance. Identify areas of
improvement and get the right people to bring about the
change.
 The Crosby philosophy
Absolute’s of Management
• Quality means conformance to requirements not elegance.
• There is no such thing as quality problem.
• There is no such thing as economics of quality: it is always
cheaper to do the job right the first time.
• The only performance measurement is the cost of quality: the
cost of non-conformance.
Basic Elements of Improvement
• Determination (commitment by the top management)
• Education (of the employees towards Zero Defects (ZD))
• Implementation (of the organizational processes towards ZD)
 Gurus of TQM
• Armand V. Feigenbaum Ph.D. : Author of
Total Quality Control

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 Gurus of TQM
• Kaoru Ishikawa Ph.D. : Author of Quality is
Free and Quality Without Tears ; Fishbone /
Ishikawa diagram for analysing cause and
effect

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 Gurus of TQM
• Genichi Taguchi Ph.D. : Taguchi philosophy

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 Benefits of Quality
• Higher customer satisfaction
• Reliable products/services
• Better efficiency of operations
• More productivity & profit
• Better morale of work force
• Less wastage costs
• Less Inspection costs
• Improved process
• More market share
• Spread of happiness & prosperity
• Better quality of life for all.
Conclusion
 Total Quality Is…
• Meeting Our Customer’s Requirements

• Doing Things Right the First Time;

Freedom from Failure (Defects)

• Consistency (Reduction in Variation)

• Continuous Improvement

• Quality in Everything We Do
 A Quality Management System Is…

• A belief in the employee’s ability to solve

problems

• A belief that people doing the work are best

able to improve it

• A belief that everyone is responsible for

quality
 Elements for Success
• Management Support
• Mission Statement
• Proper Planning
• Customer and Bottom Line Focus
• Measurement
• Empowerment
• Teamwork/Effective Meetings
• Continuous Process Improvement
• Dedicated Resources
End of UNIT - 1