Unit1 - INTRODUCTION

1. Unit 1
INTRODUCTION

2. Be on time
Keep Silence
Be attentive
Participate positively

3. Quality - Definitions
 Quality is excellence that is better than a minimum
standard.
 It is conformance to standards and ‘fitness of
purpose’
 ISO 9000:2000 definition of quality-
 It is the degree to which a set of inherent
characteristics fulfills requirements.

4. Definitions
4
Joseph Juran.
Quality is ‘ fitness for use ‘ of the product –
Philips B Crosby
Quality is Conformance to requirements
W. Edwards Deming
A predictable degree of uniformity and dependability
at low cost and suited to market
Total Quality Management - Spring 2010

5. Definitions of Quality
• Exceeding customer expectations
• Conformance to specifications
• The degree to which a product or service meets
the needs of the customer
• Uniformity around a customer-defined target
The customer is the most important part of the process.

6. Quality meaning
 Fitness for use
 Excellence
 Conformance to requirement
 Way of managing the organization
 Correcting and preventing the loss
 Totality of characteristics of an entity that bear on its
ability to satisfy stated and implied needs.

7. MEANING
 Total – Made up of the whole(or) Complete.
 Quality – Degree of Excellence a product or service
provides to the customer in present and future.
 Management – Act , art, or manner of handling ,
controlling, directing, etc.
TQM is the art of managing the whole to achieve
excellence.

8. INTRODUCTION TO TQM
What is TQM?
TQM is the integration of all functions and processes within an
organization in order to achieve continuous improvement of
the quality of goods and services. The goal is customer
satisfaction.
“ No doubt , humans are always deficient”
(Al-Quran)

9. Why TQM
 Meet competition
 Customer satisfaction
 Profit maximization
 Systematic approach
 Long term commitment
 Continuous improvement
 Top management commitment

10. Need for 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.

11. TQM six basic Concepts
 Management commitment to TQM principles and
methods & long term Quality plans for the
Organisation
 Focus on customers – internal & external
 Quality at all levels of the work force.
 Continuous improvement of the
production/business process.
 Treating suppliers as partners
 Establish performance measures for the processes.

12. “It would be better if everyone would work
together as a system, with the aim for everybody
to win.”

13. Interesting Facts
 1900 - Born in Sioux City, Iowa
 1925 - met Dr. Walter Shewhart,
 1927 - received a Ph.D in Physics from Yale
 1939 – Head Mathematician – National Bureau of
Census
 During WW II worked with Shewhart on improvement
of quality of production or weapons using statistical
methods

14.  1946 - Statistics professor – NY University
 1947 – invited by General MacArthur to come to
Japan as part of his economic and scientific staff
in rebuilding Japan
 1950 – invited to return to Japan by Japanese
Union of Scientists and Mathematicians to
teach methods for achievement of quality
 Jan. 1951 - began a series of lectures to every
single top manager in Japan
 1974 – meeting with William Conway
 June 24, 1980 – NBC’s show If Japan Can… Why
Can’t We? aired to 14 million people – later
became NBC’s most requested video of all time

15. Third Wave of the Industrial Revolution ***
 He taught an average of ten 4-day seminars per year
between 1980 and 1993 reaching over 200,000
managers.
 Almost every top manager in the country was exposed
to his teachings during those years
 Upon Deming’s death in 1993 in one obituary it was
written that Deming’s reply to writer for how he
wanted to be remembered was -
“Well, maybe… as someone who spent his life
trying to keep America from committing suicide.
***- Deming and Goldratt by Lepore and Cohen pg 151

16. Basic message:
 The cause of inefficiency and poor quality is the
system, not the employees and it is management’s
responsibility to correct the system in order to
achieve desired results.

17. Message to Japanese Management
1. Production must be seen as a system encompassing
customers and suppliers in a win-win situation.
 Customer is the most important part of the system
 Suppliers are partners
2. Quality is made in the boardroom – never blame the
workers.
3. Improving a process creates a chain reaction.
4. Continuous learning and improvement follow the
PCDA (Shewhart) cycle.
5. There is a need for trust and cooperation between
companies. Anything new learned in one company
must be shared with all including competitors.

18. One can say that the content of my seminars… and the content of my books…
are based in large part on my understanding of Shewhart’s teaching. Even if only
ten percent of the listeners absorb part of Dr. Shewhart’s teachings, the number
may in time bring about change in the style of Western management. – Dr.
Deming
Reducing variability in production will improve
quality.
 Two types of variation:
 Common causes
 Special causes
 Statistical control – a process needs to be in a
stable state with identifiable action limits

19. Key Deming Tools
Deming did not teach statistical tools – he
taught how to interpret them and their
implications to the system.
Deming Chain Reaction
PDCA Cycle
Theory of Profound Knowledge & 14
Point Philosophy
“The control chart is
no substitute for the
brain.” – Dr. Deming

20. Deming Chain Reaction
“Quality improvement is not a costly
business option but a strategic
imperative that is essential to
business survival”
Quality Cost Productivity

21. Conveys the sequential and
continual nature of CI
Plan
Do
Check
Act
Plan
Do
Check
Act

22. Theory of Profound Knowledge
- knowledge for leadership of transformation
1. Appreciation for a system
 A network of interdependent components that work together to
try to accomplish the aim of the system. Without aim there is no
system.
2. Knowledge of variation
 Understanding where the processes are stable
3. Theory of knowledge
 Predicting and anticipating what will happen if certain actions are
taken
4. Psychology of individuals, society and change.
 Appreciate people’s natural inclination toward learning and being
innovative.

23. Deming's 14 Points for Management
1. Constancy of Purpose
2. The New Philosophy
3. Cease dependence on mass inspection
4. End lowest cost tender contracts
5. Improve every process
6. Institute training on the job
7. Institute leadership

24. 8. Drive out fear.
9. Break down barriers.
10. Eliminate exhortations.
11. Eliminate arbitrary numerical
targets.
12. Permit pride of workmanship.
13. Encourage education
14. Top management commitment and
action.

43. Crosby
Zero defects, Quality is free
 Quality means conformance to requirements.
 The real costs of quality are the costs of non-conformance (such as
rework, scrap, and warranty costs).
 Do it right the first time and we avoid these costs, thereby
improving profitability.

44. Crosby: Absolutes of Quality
 Quality is conformance to requirements
 The system of quality is prevention
 The performance standard is zero defects
 The measurement of quality is the price of non-conformance

45. Crosby: Price of conformance and non-conformance
 The costs of quality (COQ) are similar to Juran’s.
 Prevention costs (design reviews, supplier evaluations, training, preventive maint.)
 Appraisal costs (inspections and tests to determine conformance to requirements)
 Failure costs (rework, scrap, warranty costs, lost sales, product liability)
 Crosby emphasizes that prevention efforts help us avoid failure costs and
appraisal costs.
 Prevention allows us to increase profits without increasing sales, buying new
equipment, or hiring people.

46. Crosby: 14 Steps to Quality Improvement
 Management
commitment
 Quality improvement
teams
 Quality measurement
 Cost of Quality
evaluation
 Quality awareness
 Corrective action
 Zero defects program
 Supervisor training
 Zero Defects day
 Goal setting
 Error cause removal
 Recognition
 Quality councils
 Do it all over again

47. Quality Vaccine
 Integrity
 Systems
 Communications
 Operations
 policies

48. What do the philosophies of Deming, Juran, and Crosby Have in
common?
 Customer Focused
 Commitment and Leadership from Top Management
 Continuous Improvement Based on Facts
 Team Based

50. Historical review of TQM
 Stoneage
 Period of craftmanship
 Period of manufacturing (1800-1900)
 Inspection phase (1920-1940)
 SQC (1940-1960)
 TQC (1960-1980)
 TQM (1980-2000)
 Q-QC-SQC-TQC-QA-TQM

51. DIMENSION OF PRODUCT QUALTY
 Performance - Primary Characteristics
 Features –Secondary Characteristics
 Conformance-Meeting Specifications or Standards
 Reliability –Consistency of Performance over time-fail
 Durability- Useful life ,include Repair.

52. DIMENSION OF PRODUCT QUALTY
 Service-Resolution of problem, ease of repair.
 Response- Human relations with Customers.
 Aesthetics-Sensory Features.
 Reputation- Past performance, Company Image.

53. DIMENSION OF SERVICE QUALITY
 Reliability
 Responsiveness
 Assurance
 Empathy
 Tangibles
 Other dimensions

54. OTHER DIMENSIONS
 Time & Timeliness
 Completeness
 Courtesy
 Consistency
 Accessibility & Convenience
 Accuracy
 Competence
 Communication
 Credibility
 Security

55. Barrier to TQM Implmentation
 Lack of Top management commitment
 Lack in Changing Organization Culture
 Lack of proper planning
 Lack of Continuous Training & Education
 Improper Organization Structure & Departments
 No availability Data’s & Facts For Effective Decisions
 Internal & External Customers-Dissatisfaction
 Poor Empowerment & Teamwork
 Lack of Continuous Improvement approaches

56. Benefits
 Improved Quality
 Employee Participation
 Team Work
 Internal & External Customer Satisfaction
 Productivity ,Communication
 Profitability & Market Share

57. QUALITY COUNCIL
It is a team to provide overall direction for achieving the
quality culture.
 To build quality in to the organizational Quality
 It provides overall direction
Members
 CEO
 Senior manager
 Coordinator or Consultant

58. Duties of Quality Council
 Establish or developing core values and Quality system
 Demelopment of plan and programme
 Training or workshop
 Finding cost of poor quality and monitoring
continuously
 Finding performance measure
 Continuous determination of projects
 Team work
 Recognize and reward system

59. Duties of Coordinator
 Two – way trust
 Share quality council expectation
 Team requirement to the council
 Empower the team
 To communicate the details of progress of quality
improvements activities

60. Quality Statement
It is a strategic planning process
 Vision statement
 Mission statement
 Quality statement

61. Vision Statement
 Short declaration of what an organization wants to
be in the very long term future (Futuristic view)
 Provides realistic and clear picture of where it is
headed and why it is going there
 Concise

63.  Vision
 To make every journey an experience and every
experience a memory,
 Mission
 To be The Leader in the Indian Automobile Industry,
Creating Customer Delight and Shareholder's Wealth;
A pride of India."

65.  Vision
Our Team provides value for your future.
 Mission
To create exceptional automotive value for our
customers by harmoniously blending safety, quality
and efficiency. With our diverse team, we will provide
responsible stewardship to our community and
environment while achieving stability and security
now and for future generations.

67.  Vision
 Empower a billion lives through sustainable, affordable and
innovative energy solutions.
 Mission
 Keeping the customer at the center of all we do
 Operating assets and executing projects at benchmark level
through technology & innovation
 Sustainable growth with a focus on profitability and market
leadership
 Creating an empowered workforce driven by passion &
purpose
 'Leadership with Care' for all stakeholders

71.  Vision
 Create vibrant society by realizing the potential of
mobility
 Mission
 Provide new experiences for our customers with
creative products and service excellence.
 Make positive contributions to the sustainable
development of our society.
 Act sincerely as a trusted company.
 Enhance stakeholder value by leveraging the Alliance.

75. Mission Statement
 Who we are?
 Who are the customers?
 What we do?
 How we do it?

76. Quality Policy Statement
 A general guide for everyone
 Approved by the CEO
 Awareness and implemented by everyone
 Required by ISO/QS 9000 standards for quality
systems.