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
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.
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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
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
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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
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
62.
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."
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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.
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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
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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.
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.