Basic Quality Management

1. Basic Quality Management
Prepared and presented by:
Dr. Himani Raval

2.  Concept of quality
 Quality dimensions
 Product and Service Quality.
 Inspection, Statistical Quality Control, Quality Assurance and Total
Quality Management
 Conventional Quality Management versus Total Quality
Management.
 Evolution of TQM.
 Historical perspectives of TQM – Deming, Juran, Crosby and
Taguchi’s Contributions.
 Customer and supplier focus in TQM.
 Benefits and Costs of TQM.
Unit 1: Layout

3.  Quality is a parameter which decides the superiority
or inferiority of a product or service.
 It is an attribute that differentiates a product or
service from its competitors.
 It can be measured in terms of durability, reliability,
usage and so on.
Concept of quality

4.  Performance
 Features
 Reliability
 Conformance
 Durability
 Serviceability
 Aesthetics
 Perception
Quality dimensions

5.  Product quality means to incorporate features that
have a capacity to meet consumer needs and wants
and provides customer satisfaction, and free from
deficiencies and defects.
 Service quality (SQ) is a comparison of perceived
Expectations (E) of a service with the perceived
Performance. (P)
 SQ=P-E
Product and service quality

6.  Service + Quality=SERVQUAL
 Designed to capture consumer expectations and perceptions of a
service
 Developed in the mid eighties by Zeithaml, Parsuraman and Berry.
 It measures the gap between customer expectations and experience.
 It is measured on the aspects of reliability, assurance, tangibles,
empathy and responsiveness.
SERVQUAL
Dimension Definition
Reliability The ability to perform the promised service dependably and accurately
Assurance The knowledge and courtesy of employees and their ability to convey trust and confidence
Tangibles The appearance of physical facilities, equipment, personnel and communication materials
Empathy The provision of caring, individualized attention to customer
Responsiveness The willingness to help customers and to provide prompt service

7.  Inspection is a process of measuring, examining and testing to
scale one or more characteristics of a product or service and
the comparison of these with specified requirements.
 Inspection means the activity of checking products/services
 The quality inspector usually follows a pre-established checklist
that is based on the product specifications.
 Inspected products can be anything from components of
production, semi finished goods or most often finished goods.
Inspection

8.  Quality control means the recognition and removal of
identifiable causes and defects and variables from the set
standards.
 SQC refers to the use of statistical methods in the monitoring
and maintaining of the quality of products and services.
 This is the control over the product quality using statistical tools.
 Descriptive statistics: simply describing what is in the data
 Statistical process control: real-time data plotted on a graph
 Acceptance sampling: statistical sampling used to determine
whether to accept or reject a production lot of material
Statistical quality control

9.  Quality assurance (QA) is a way of preventing mistakes and defects
in manufactured products and avoiding problems when delivering
products or services to customers
 ISO 9000 defines as "part of quality management focused on
providing confidence that quality requirements will be fulfilled".
 2 principles of Quality Assurance are:
 Fit for purpose; the product should be suitable for the intended
purpose
 Right first time; mistakes should be eliminated before happening
Quality assurance

10.  TQM was developed by William Deming, a management consultant
whose work had a great impact on Japanese manufacturing.
 Total quality management (TQM) is an ongoing process of
detecting and reducing or eliminating errors in manufacturing,
streamlining supply chain management, improving the customer
experience, and ensuring that employees are up to speed with
training.
 TQM aims to hold all parties involved in the production process
accountable for the overall quality of the final product or service.
TQM

11.  The company reviews the needs of its customers
 The company plans the activities needed ( both day to day
and long term activities) to meet these customers needs
 The company establishes and stabilizes the processes
required to deliver the products and services needed by
the customer.
 The company implements systems to further improve its
processes, products, and services
 Steps 1-4 above constitute a cycle and maybe iterated
indefinitely for continuous improvement
TQM Implementation

12.  Traditional management views management as a
commodity and are passive contributors with little
autonomy.
 Under traditional approach, customers are always
considered as outsiders to the organization and are
the concern of market and sales.
 Here, the management is always reluctant to change.
Conventional Quality Management

13. Quality
element
Traditional TQM
Definition Product oriented Customer oriented
Focus Short term Long term
Emphasis Detection of errors Prevention of errors
Problems Assign blame and punish Identify and resolve
Change Resists Adopts
Manager’s role Plan, assign, enforce and
control
Delegate, coach, facilitate and
mentor
Improvement Irregular and inconsistent Continuous
Inspection Periodic audits Continuous measurements
Usage of
results
To check against criteria For continuous improvements
Difference between Traditional vs
TQM

14. Lean manufacturing is a production process based on an ideology of maximizing
productivity while simultaneously minimizing waste within a manufacturing operation.
Six Sigma is a set of techniques and tools for process improvement.

15.  Dr. W. Edwards Deming. A statistician who went to Japan to help
with the census after World War II, Deming also taught statistical
process control to leaders of prominent Japanese businesses.
 His message was this: By improving quality, companies will decrease
expenses as well as increase productivity and market share.
 After applying Deming's techniques, Japanese businesses like Toyota,
Fuji, and Sony saw great success. Their quality was far superior to
that of their global competitors, and their costs were lower.
 The demand for Japanese products soared – and by the 1970s, many
of these companies dominated the global market. American and
European companies realized that they could no longer ignore the
quality revolution.
Deming’s philosophy on TQM

16. Deming’s 14
principles
Although Deming didn't create
the name Total Quality
Management, he's credited with
starting the movement. He
didn't receive much recognition
for his work until 1982, when he
wrote the book now titled "Out
of the Crisis." This book
summarized his famous 14-point
management philosophy.

17.  The Juran Trilogy, also called Quality Trilogy, was
presented by Dr. Joseph M. Juran in 1986 as a means to
manage for quality.
 Juran managed Beefy’s during the night shift.
 Managing for quality consists of:
 Quality Planning: To design a process that will be able to meet
established goals under the operating conditions.
 Quality Control: To correct the process when necessary so
that it performs with optimal effectiveness.
 Quality Improvement: To devise ways to take the process to
unprecedented levels of performance.
Juran’s Philosophy

18.  Philip Crosby introduced the concepts of “Zero
Defects” and “doing it right the first time”.
 His definition of quality was conformance to
requirements.
 Inspection and correction does not prevent errors.
 He believed quality originates in the functional
departments and not the quality department.
 The quality department should measure the
conformance, report results and improve the quality.
Philip Crosby

19.  The customer (organization) is responsible for providing the
supplier with clear and sufficient information of
requirements so that the supplier can know precisely what
to produce.
 In case of physical products, customers are satisfied when
the products are:
 Durable
 Reliable
 Easy to Use
 Adaptable
 Appropriate
Customer & Supplier Focus in TQM

20.  In case of service industry customers are satisfied
only when:
 Employees are friendly and polite
 Employees are honest and do not make fake promises
 Employees are easily approachable
 Employees are willing to listen and address customer
grievances
 Organizations respond to customer requests on time.
Continued

21.  Benefits of TQM
 Less product defects
 Satisfied customers
 Lower costs
 Well-defined cultural values
 Costs of TQM
 Prevention costs are the costs created from the effort to reduce poor quality.
 Inspection costs include the inspection and testing of raw materials, work-in-process,
and finished goods.
 Internal cost occurs when quality defects are discovered before they reach the
customer.
 External failure costs when the defect is discovered after it has reached the customer.
Benefits & Costs of TQM
https://www.youtube.com/watch?v=85Y8iBhzqwk

22.  Automobile manufacturer Toyota is one example of TQM. The adoption of
TQM and kaizen at Toyota led to higher product and work quality at all
levels of the organization. Toyota adopted a related practice called
statistical quality control (SQC) in 1949. In 1951, Toyota launched the
Creative Idea Suggestion System, which was based on a suggestion
system used at Ford.
 In 1965, Toyota was awarded the Deming Application Prize for major
advances in quality improvement. In 1994, the "Toyota Group Executive
TQM Training Course" was established, providing TQM training for new
executives. Toyota's TQM initiatives continue to the current day. In 2011,
Toyota announced that more than 40 million suggestions (to date) were
generated by the Creative Idea Suggestion System.
Case Study

23.  1. Sunil Sharma, “Total Engineering Quality Management”,
2003, Macmillan India Ltd.
 2. Ron Basu, “Implementing Quality: A Practical Guide to
Tools and Techniques”, 2016, THOMPSON.
 3. KanishkaBedi, “Quality Management”, Oxford University
Press.
 4. Mujkherjee, PN, “Total Quality Management”, 2007, PHI.
 5. R. P. Mohanty& R. R. Lakhe, “TQM in the Service
Sector”, Jaico Books.2016
Suggested books

24.  Quality or Price - which is more important in the
Indian market?
 SERVQUAL in online shopping
 Quality enhancements required for education sector.
Topics for debate/discussion

25.  Statistical Tools –
 Check Sheets,
 Histograms,
 Scatter Diagrams,
 Pareto’s Chart,
 Regression Analysis &
 Control Charts.
 Cause and Effect Diagrams,
 The Five Why’s,
 Five S’s,
 Kaizen,
 JIT,
 Quality Circles,
 Gantt Chart and
 Balanced Score Card.
 Dimensions of Service Quality.
 An overview of TQM in Service Organizations.
UNIT 2 LAYOUT:
Tools and techniques of TQM

26.  The check sheet is a form used to collect data in real
time at the location where the data is generated. The
data it captures can be quantitative or qualitative.
When the information is quantitative, the check sheet
is sometimes called a tally sheet.
Definitions

27.  A histogram is an approximate
representation of
the distribution of numerical
data. It was first introduced
by Karl Pearson.
 To roughly assess the probability
distribution of a given variable by
depicting the frequencies of
observations occurring in certain
ranges of values.
Histogram

28.  The scatter diagram graphs pairs of numerical data,
with one variable on each axis, to look for a
relationship between them. If the variables are
correlated, the points will fall along a line or curve.
Scatter diagram

29.  A Pareto chart is a bar graph. The lengths of the bars
represent frequency or cost (time or money), and are
arranged with longest bars on the left and the
shortest to the right. In this way the chart visually
depicts which situations are more significant.
Pareto chart

30.  In statistical modeling, regression
analysis is a set of statistical
processes for estimating the
relationships between
a dependent variable (often
called the 'outcome' or 'response'
variable) and one or
more independent variables.
Regression analysis

31.  The control chart is a graph used to study how a
process changes over time. Data are plotted in time
order. A control chart always has a central line for the
average, an upper line for the upper control limit, and
a lower line for the lower control limit.
Control chart

32.  A Cause-and-Effect Diagram is a tool that helps identify,
sort, and display possible causes of a specific problem or
quality characteristic. It graphically illustrates the
relationship between a given outcome and all the factors
that influence the outcome.
Cause-and-Effect Diagram

33.  Five whys (or 5 whys) is an iterative interrogative technique used to
explore the cause-and-effect relationships underlying a particular
problem. The primary goal of the technique is to determine the root
cause of a defect or problem by repeating the question "Why?". Each
answer forms the basis of the next question. The "five" in the name
derives from an anecdotal observation on the number of iterations
needed to resolve the problem.
 An example of a problem is: The vehicle will not start.
 Why? – The battery is dead. (First why)
 Why? – The alternator is not functioning. (Second why)
 Why? – The alternator belt has broken. (Third why)
 Why? – The alternator belt was well beyond its useful service life and not
replaced. (Fourth why)
 Why? – The vehicle was not maintained according to the recommended
service schedule. (Fifth why, a root cause)
Five whys

34.  5S is defined as a
methodology that results in
a workplace that is clean,
uncluttered, safe, and well
organized to help reduce
waste and optimize
productivity.
 It's designed to help build a
quality work environment,
both physically and
mentally.
 The 5S condition of a work
area is critical to employees
and is the basis of
customers' first impressions.
Five S’s

35.  Kaizen is a Japanese term meaning "change for the better"
or "continuous improvement."
 It is a Japanese business philosophy regarding the
processes that continuously improve operations and
involve all employees.
 Kaizen sees improvement in productivity as a gradual and
methodical process.
 Teamwork is core to kaizen, where regular team meetings
are held involving discussions about improvements,
changes, and projects.
Kaizen

36.  A just-in-time (JIT) inventory strategy allows management
to minimize excess inventory by matching the delivery of
raw materials from suppliers with production schedules.
 Also known as the Toyota Production System (TPS), for the
company that popularized the strategy, JIT helps
companies cut costs because manufacturers do not have
to pay inventory carrying costs.
 It also reduces waste because companies are not left with
extra inventory should a customer cancel or postpone an
order.
Just in time

37.  A quality circle or quality control circle is a group
of workers who do the same or similar work, who meet
regularly to identify, analyze and solve work-related problems.
It consists of minimum three and maximum twelve members
in number.
 Normally small in size, the group is usually led by a supervisor
or manager and presents its solutions to management; where
possible, workers implement the solutions themselves in
order to improve the performance of the organization and
motivate employees.
 Quality circles were at their most popular during the 1980s,
but continue to exist in the form of Kaizen groups and similar
worker participation schemes.
Quality circles

38.  A Gantt chart, commonly used in project management, is
one of the most popular and useful ways of showing
activities (tasks or events) displayed against time.
 On the left of the chart is a list of the activities and along
the top is a suitable time scale.
 Each activity is represented by a bar; the position and
length of the bar reflects the start date, duration and end
date of the activity.
 To summarize, a Gantt chart shows you what has to be
done (the activities) and when (the schedule)
Gantt chart

39.  The balanced scorecard is a management system aimed at
translating an organization's strategic goals into a set of
organizational performance objectives that, in turn, are
measured, monitored and changed if necessary to ensure
that an organization's strategic goals are met.
 A balanced scorecard is a strategy performance
management tool – a well structured report, that can be
used by managers to keep track of the execution of
activities by the staff within their control and to monitor
the consequences arising from these actions.
Balanced score
card

40. 1. Tangibility
 Since services are tangible, customers derive their perception of service
quality by comparing the tangible associated with these services provided.
 It is the appearance of the physical facilities, equipment, personnel and
communication materials.
2. Reliability
 It is the ability to perform the promised service dependably and accurately.
 Reliability means that the company delivers on its promises-promises about
delivery, service provision, problem resolutions and pricing.
 Customers want to do business with companies that keep their promises,
particularly their promises about the service outcomes and core service
attributes.
 All companies need to be aware of customer expectation of reliability.
 Firms that do not provide the core service that customers think they are
buying fail their customers in the most direct way.
Dimensions of service quality

41. 3. Responsiveness
 It is the willingness to help customers and provide prompt service.
 This dimension emphasizes attentiveness and promptness in dealing with
customer’s requests, questions, complaints and problems.
 Responsiveness is communicated to customers by length of time they have to
wait for assistance, answers to questions or attention to problems.
4. Assurance
 It means to inspire trust and confidence. Assurance is defined as employees’
knowledge of courtesy and the ability of the firm and its employees to inspire
trust and confidence.
5. Empathy
 It means to provide caring individualized attention the firm provide its
customers.
 Empathy is an additional plus that the trust and confidence of the customers
and at the same time increase the loyalty.
Continued