2. • Definition:
The group of features and characteristics of a saleable good
which determine its desirability and which can be controlled by
a manufacturer to meet certain basic requirements defines
product quality.
3/11/2014 2
3. • In other words, we can say that, Product Quality means to incorporate features that
have a capacity to meet consumer needs and give customer satisfaction by altering
products to make them free from deficiencies or defects.
• It is classified on the basis of:
1. Measured Characteristics
2. Attributes Characteristics
3/11/2014 3
5. • Product quality mainly depends on important factors like:
oThe type of raw materials used for making a product.
oHow well are various production-technologies implemented?
oSkill and experience of manpower that is involved in the production process.
oAvailability of production-related overheads like power and water supply, transport, etc.
3/11/2014 5
6. • A manufacturer who is determined to ensure product quality could also maintain strict
adherence to specifications and product characteristics. Examples of these may be:
• Dimensions, such as length, diameter, thickness or area;
• Physical properties, such as weight, volume or strength;
• Electrical properties, such as resistance, voltage or current;
• Appearance, such as finish, colour or texture;
• Functional qualities, such as output or kilometre per litre;
• Effects on service, such as taste, feel or noise level.
3/11/2014 6
7. • If a product fulfils the customer‟s expectations, the customer will be pleased and
consider that the product is of acceptable or even high quality.
• Quality needs to be defined firstly in terms of parameters or characteristics, which
vary from product to product.
3/11/2014 7
8. • To ensure product quality, the entire process of producing the product must be
established and streamlined.
• It includes fixing product specifications, preparing product design, procuring suitable
raw materials, preparation for manufacture, manufacture, and post manufacturing
until it gets into the hands of the consumer.
3/11/2014 8
9. • In many instances, however, the correction of quality deficiencies is also required at
the end of the process since in spite of all the efforts made, the required quality will
sometimes not be attained and a company may be faced with a pile of scrap and
rework.
• Corrective and preventative actions have to be taken to avoid unnecessary wastage
and rework.
3/11/2014 9
10. • Focus on product quality is divided into three stages as discussed below:
1. Before Production
2. During Production
3. After Production
3/11/2014 10
12. • Importance of product quality can be seen through two sides:
1. For company : Product quality is very important for the company. This is because,
bad quality products will affect the consumer's confidence, image and sales of the
company. It may even affect the survival of the company. So, it is very important
for every company to make better quality products.
3/11/2014 12
13. • For consumers : Product quality is also very important for consumers. They are
ready to pay high prices, but in return, they expect best-quality products. If they are
not satisfied with the quality of product of company, they will purchase from the
competitors.
• Nowadays, very good quality international products are available in the local market.
So, if the domestic companies don't improve their products' quality, they will struggle
to survive in the market.
3/11/2014 13
14. • Product quality is based on five main aspects:
1. Quality of design : The product must be designed as per the consumers' needs and
high-quality standards.
2. Quality conformance : The finished products must conform (match) to the product
design specifications.
3/11/2014 14
15. 3. Reliability : The products must be reliable or dependable. They must not easily
breakdown or become non-functional. They must also not require frequent repairs.
They must remain operational for a satisfactory longer-time to be called as a
reliable one.
4. Safety : The finished product must be safe for use and/or handling. It must not harm
consumers in any way.
5. Proper storage : The product must be packed and stored properly. Its quality must
be maintained until its expiry date.
3/11/2014 15
18. Total –Complete
Quality -Superior, Best quality having essential characteristics
satisfying need
Management -Collective body of those who manage or direct any
enterprise or interest
19. TQM is a management philosophy that seeks to integrate all organizational
functions (marketing, finance, design, engineering, and production, customer
service, etc.) to focus on meeting customer needs and organizational
objectives.
TQM, is a method by which management and employees can become
involved in the continuous improvement of the production of goods and
services.
It aims at increasing business and reducing losses due to wasteful
practices.
20. The simple objective of TQM is "Do the right things, right the first time,
every time".
Some of the companies who have implemented TQM include :
Ford Motor Company
Phillips Semiconductor
SGL Carbon, Motorola and
Toyota Motor Company.
21. The core of TQM is the customer-
supplier interfaces, and at each
interface lie a number of processes.
This core must be surrounded by
commitment to quality,
communication of the quality
message, and recognition of the need
to change the culture of the
organization to create total quality
and they are supported by the key
management functions of people,
processes and systems in the
organization.
22. Customer satisfaction is a measure of how products/services supplied
by an organisation meet or surpass customer expectation.
TQM
is management approach in achieving long-term success with a strong
focus on customer satisfaction.
TQM
depends on the participation of all members of an organization to improve
processes, products, services and their work culture.
23. Focus on Customer
i. Identify and meet customer needs
ii. Stay tuned to changing needs, e.g. fashion styles
Continuous Improvement
Continuous learning and problem solving, e.g. Kaizen, 6 sigma
Employee Empowerment
Empower all employees external and internal
customers
24. Understanding Quality Tools
Ongoing training analysis, assessment, correction & implementation tools
Team Approach
i. Teams formed around processes of 8 to 10 people
ii. Meet weekly to analyze and solve problems
Benchmarking
Studying practices at “best in class” companies
26. Philip Crosby is an American who promoted the phrases“zero defects” and “right
first time”.
As the quality control manager of the Pershing missile program, Crosby was
credited with a 25 percent reduction in the overall rejection rate and a 30
percent reduction in Scrap costs.
Philip Crosby believes management should take prime responsibility for quality, and
workers only follow their managers example.
27. He defined the Four Absolutes of Quality Management
1 Quality is conformance to requirements
2 Quality prevention is preferable to quality inspection
3 Zero defects is the quality performance standard
4 Quality is measured in monetary terms
Basic Elements of Improvement
Determination (commitment by the top management)
Education (of the employees towards Zero Defects )
Implementation (of the organizational processes towards zero defect )
28. “Joseph Moses Juran ( December 24 , 1904 – February 28 , 2008 ) was a
20th century management consultant who is principally remembered as an
evangelist for quality and quality management , writing several influential
books on these subjects.”
29. Pursue quality on two levels:
The mission of the firm as a whole is to achieve high product quality
.
The mission of each individual department is to achieve high
production quality.
At operational level, focus should be on conformance to
specifications through elimination of defects- use of statistical
methods.
30. It is based on-
Quality planning :Process of preparing to meet quality goals. Involves
understanding customer needs and developing product features.
Quality control : Process of meeting quality goals during operations. Control
parameters. Measuring the deviation and taking action.
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.
31. The greatest impact of Dr. Shingo Shigeo's teachings
can be classified into the three concepts :
1. Zero Quality Control.
2. Just In Time (JIT).
3. Single Minute Exchange of Dies (SMED).
32. In terms of quality, Shingo's paramount contribution
was his development in the 1960s of poka-yoke .
The basic idea is to stop the process whenever a defect occurs, define
the cause and prevent the recurring source of the defect.
Shingo distinguishes between 'mistakes' (which are
inevitable) and 'defects' (which result when a mistake reaches a
customer).
The aim of poka yoke is to design devices which prevent mistakes
becoming defects.
33. This famous equation is the essence of Zero Quality Control Concepts
formulated by Dr. Shigeo Shingo.
Poka-Yoke Techniques to Correct Defects + Source
Inspection to Prevent Defects = Zero Quality
Control
34. Dr. Shigeo Shingo's Zero Quality Control (ZQC) techniques make use of
the following engineering principles:
100 percent inspections done at the source instead of sampling inspections .
Immediate feedback from successive quality checks and self checks.
35. Just In Time (JIT).
It can be defined as:
“ A philosophy of manufacturing based on elimination of all waste and
continuous improvement of productivity. It encompasses the successful
execution of all manufacturing activities required to produce a final
product, from design engineering to delivery ”
The primary elements include:
having only the required inventory when needed
to improve quality to zero defects
to reduce lead time by reducing setup times
36. Single Minute Exchange of Dies
(SMED)
SMED uses the following four-step procedure:
1. Observe and Analyze How the Setup Is Currently performed
2. Separate Internal from External Setup Activities.
3. Convert Internal to External Setup Activities
4. Simplify and Streamline Activities
37. Genichi Taguchi, a Japanese engineer, realized the importance of cost
associated with poor quality and its impact on corporate profitability +
losses (due to poor quality) to the society.
His main objective to improve quality and decrease costs.
His concept of „Robust Design‟ is intended to optimize quality at the
design phase.
Taguchi developed a mathematical model in which loss is a quadratic
function of the deviation of the quality from its target Value-Quality Loss
Function
38.
39. John S. Oakland is a British quality expert.
According to him, „quality is meeting the customer‟s requirements‟ and
„quality starts at the top‟. He considers the pursuit of quality as the basis for
the success of any company.
Oakland opines that quality has emerged as the most significant
competitive weapon and total quality management (TQM) is a means of
managing for the future.
40. Oakland describes seven principal features of TQM. They are as follows:
Quality is fulfilling the customer‟s needs.
Most quality problems are among departments.
Quality control is monitoring, finding, and eliminating causes of quality
problems.
Quality assurance rests on prevention, management systems, effective
audit, and review.
Quality must be managed; it does not just happen.
Focus on prevention, not cure.
Reliability is an extension of quality and enables us to „delight the
customer‟.
42. TOYOTA
Established in 1937 out of Sakichi Toyota’s weaving machine company.
Toyota is the 3rd largest automotive manufacturer.
Toyota Motor Corporation has been headquartered at Toyota City, Aichi.
Toyota has an annual sale of $120 Billion.
Produces 5.5 million vehicles per year from 56 manufacturing plants across 6
continents.
3/11/2014 42
43. STEPS TO IMPLEMENT TQM
Kaizen – Focuses on Continuous Process Improvement, to make processes
visible, repeatable and measureable.
Atarimae Hinshitsu – Focuses on intangible effects on processes and ways to
optimize and reduce their effects.
3/11/2014 43
44. Kansei – Examining the way the user applies the product leads to
improvement in the product itself.
Miryokuteki Hinshitsu – Broadens management concern beyond the
immediate product.
3/11/2014 44
45. CONCEPT OF QUALITY
ASSURANCE
Focuses on Assembling and Manufacturing processes of the components.
Quality Policy: “ We will strive to meet customer’s expectations by providing
world class products and services through total employee commitment and
continuous progress”.
3/11/2014 45
46. ORIGIN
In 1951, Toyota launched the Creative Idea Suggestion System to support and
encourage employees in making effective contributions to the company’s
development.
In 1960s, Toyota started manufacturing passenger cars.
Determined the major cause of product defect was wear in machines making
parts.
3/11/2014 46
47. Workers used to operate the machines until it breaks down, and then
call the engineer to fix it or throw it away.
Steps taken to tackle this problem:-
Assigned workers a single machine and to maintain a notebook for
their machine.
Designed special guards and covers for machines to keep dirt and
chips out of machines permanently.
Systematic Preventative Maintenance .
3/11/2014 47
48. PRINCIPLES TO ADOPT TQM
Base your management decision on long-term philosophy, even at
the expense of short-term financial goals.
Create continuous process flow to bring problems to the surface.
3/11/2014 48
49. Use “pull” system to avoid overproduction.
Level out the workload.
Build the culture of stopping to fix the problems to get quality right for
the first time.
Standardize tasks are the foundation for continuous improvement and
employee empowerment.
Use visual controls so that no problem is hidden.
Use only reliable and thoroughly tested technology that serves your
people and process.
Grow leaders who thoroughly understands the work, live the
philosophy and teach it to others also.
3/11/2014 49
50. Respect your extended network of partners and suppliers by
challenging them and helping them to improve.
Go and see for yourself to thoroughly understand the situation.
Make decision slowly by consensus, considering all the options and
implementing the decisions rapidly.
Become a learning organization through relentless reflection and
continuous improvement.
3/11/2014 50
51. RULES TO SET OPERATIONS
1st rule govern the way workers do their work.
2nd rule the way they interact with each other.
3rd rule governs how production lines are constructed.
4th rule is about how people learn to improve
3/11/2014 51
53. MAHINDRA & MAHINDRA
Started in 1945, by J.C Mahindra and K.C Mahindra with Guam Mohammed as
Mahindra and Mohammed as a steel company in Ludhiana.
After Independence Guam Mohammed left the company to become the first
Finance Minister of Pakistan.
3/11/2014 53
54. Entered automotive manufacturing in 1947 and brought the iconic
Willis Jeep in India.
US $15.4 Billion multinational group with more than 144,000
employees in over 100 countries in the world.
New global brand name- Mahindra Rise.
It is ranked 21 in the list of top companies in India in the Fortune 500
list of 2011.
3/11/2014 54
55. PREVIOUS TO TQM(1990)
Tractor division was the sellers market.
Focus was on quality.
No emphasis on development of new products.
Manufacturing activities were more inspection oriented detection.
Interaction with suppliers purely need based.
Sales and service activities lacked standardization.
Employee involvement in improvement activities were very limited.
3/11/2014 55
56. TQM JOURNEY
The TQM journey started in three phases:
1. Introduction Phase.(1990-1994)
2. Promotion Phase.(1995-1999)
3. Development Phase.(2000 onward)
3/11/2014 56
57. INTRODUCTION PHASE
Improving quality control through process control.
Improving quality of bought out components.
Increasing productivity and reducing the cost of poor quality.
Processes like Juran’s Process of Quality improvement and
Statistical Process Control were adopted.
3/11/2014 57
58. PROMOTION PHASE
The focus was in both standardization and improvement of
operations
Certification ISO 9000 and automotive sector specified standard
QS 9000 were obtained.
Up gradation of manufacturing facilities.
Initiation of Deeming Prize Guidelines.
3/11/2014 58
59. DEVELOPMENT PHASE
Improvement in core processes like new product development, manufacturer
supplier management and sales customer operation.
Certification to environment management system standards ISO 14001.
Continuous improvement activity started including 100 % of the employees.
3/11/2014 59
60. BENEFITS OF TQM
Reduction in number of rejections of units.
Higher customer satisfaction.
Deeming Prize in 2003.
Become market leader by introduction of cars like Scorpio, Vento,
XUV 500 etc.
3/11/2014 60
62. • Quality management tool is a designation given to a fixed set of graphical techniques
identified as being most helpful in troubleshooting issues related to quality.
• They are called basic because they are suitable for people with little formal training in
statistics and because they can be used to solve the vast majority of quality-related
issues.
3/11/2014 62
64. • A Histogram is a picture of variation or distribution, where data has been
grouped into cells and their frequency represented as bars.
• It is convenient for large amounts of data, particularly when the range is
wide. It gives a picture of the extent of variation, highlights unusual areas
and indicates the probability of particular values occurring.
3/11/2014 64
66. • The diagram is named after Vilfredo Pareto, and its use in quality
assurance was popularized by Joseph M. Juran and Kaoru Ishikawa.
• A Pareto diagram is a special type of bar chart where the values being
plotted are arranged in descending order.
• The graph is accompanied by a line graph which shows the cumulative
totals of each category, left to right.
3/11/2014 66
68. • The Ishikawa diagram (or fishbone diagram or also cause-and-effect
diagram) are diagrams, that shows the causes of a certain event.
• A common use of the Ishikawa diagram is in product design, to identify
potential factors causing an overall effect.
3/11/2014 68
70. CAUSES
• Causes in the diagram are often based on a certain set of causes, such as
the 6 M's, 8 P's or 4 S's.
• Cause-and-effect diagrams can reveal key relationships among various
variables, and the possible causes provide additional insight into process
behaviour.
3/11/2014 70
71. • Poka Yoke is a quality management concept developed by a Matsushita
manufacturing engineer named Shigeo Shingo to prevent human errors
from occurring in the production line.
• Poka yoke (pronounced "poh-kah yoh-kay") comes from two Japanese
words - "yokeru" which means, "to avoid", and "poka" which means
"inadvertent errors."
• Thus, poka yoke more or less translates to "avoiding inadvertent errors".
3/11/2014 71
72. Three levels of Poka-Yoke:-
• Elimination of spills, leaks, losses at the source or prevention of a
mistake from being committed.
• Detection of a loss or mistake as it occurs, allowing correction before it
becomes a problem.
• Detection of a loss or mistake after it has occurred, just in time before it
blows up into a major issue (least effective).
3/11/2014 72
73. • Cause-and-Effect Diagram with the Addition of Cards.
• Provide a tool for continuous systematic improvement.
• To help identify causes of specific problems and to identify, test, and
institute process improvements.
3/11/2014 73
74. CEDAC can be applied to a variety of situations:-
• Product quality; returns and allowances
• Customer complaints
• Design problems
• Rework
• Poor communications
• Setup problems
• Downtime problems
3/11/2014 74
75. Cost Of Quality(COQ)
• Concept
• Definition
• Measurement
• Use Of COQ in
• Total Quality Management &
Production Management
3/11/2014 75
76. Concept
• Cost of Quality is a financial measure of the quality
performance of an organization .It is essentially a measure
of lack of quality and can also be termed as cost of bad
quality.
• Understanding cost of quality helps organizations to
develop quality conformance as a useful strategic
business tool that improves their product services
&brand image.
3/11/2014 76
77. Definition
• Cost of Quality is the total cost to produce the product or
service of the project while ensuring quality standards. It
includes prevention and appraisal costs (costs of
conformance) as well as failure costs (cost of non-
conformance).
–It was first described by Armand V. Feigenbaum in
a 1956 Harvard Business Review Article .
3/11/2014 77
78. •Scrap
•Rework
•Warranty costs
Hidden Costs
Visible costs
• Excessive use of material
• High inventory
• Inadequate resource utilization
• Cost of redesign and re-inspection
• Cost of resolving customer problems
• Lost customers / Goodwill
Visible and hidden costs
• Conversion efficiency of materials
3/11/2014 78
80. Measurement
• Cost Of Quality is primarily used to understand, analyze &
improve the quality performance. Cost of Quality can be
used by shop floor personnel as well as a management
measure. It can be used as a standard measure to study
an organization’s performance vis-à-vis another similar
organization and can be used a benchmarking indices.
3/11/2014 80
81. How Measurement Is Done?
• The costs associated with quality are divided into two
categories :
• Costs due to poor quality
– Failure costs are mainly constituted in poor quality costs
• Costs associated with improving quality
– Prevention costs and appraisal costs are costs associated with improving quality
3/11/2014 81
82. Specific Cost Areas in Cost Of Quality
Accordingly, Cost Of Quality identifies three specific cost
areas:
– Prevention Cost: The cost associated with planning, training and writing
procedures associated with doing it first time right.
– Appraisal Cost: The cost associated with checking and testing to find out whether
it has been done first time right.
– Failure Cost: The cost (internal or external) associated with failure to do it first time
right.
(All the above costs can be divided in two categories Hard Cost & Soft Cost)
3/11/2014 82
84. Hard Costs
• These are the costs generally measured & recorded with
the organization.
» Example(Production Facility)
» Prevention: (Training Programs , Preventive Maintenance)
» Appraisal: (Measuring Equipment , Inspection Contracts)
» Internal Failure : (Scrap , Rework, Downtime , Overtime)
» External Failure: (Warranty, Customer Complaints , Product Liability
Lawsuits, Lost Sales)
3/11/2014 84
85. Soft Costs
• These are estimated either directly or as a part of an
estimate including normal work . These estimates are then
converted to cost by using average cost figures from
accounts.
» Example (Production Facility)
» Prevention: (% of man hours spent on training, writing procedures and
planning)
» Appraisal: (% man hours spent on checking and testing)
» Internal Failure: (% man hours spent on rework and downtime)
» External Failure: (% man hours spent on handling failure, warranty etc.)
3/11/2014 85
87. Benefits Of Cost Of Quality
• Identifying Cost Of Quality can have several benefits like:
–It provides a standard measure across the
organization and also inter-organization.
–It builds awareness of the importance of quality.
–It identifies improvement opportunities.
–Being a cost measure, it is useful at shop floor as
well as at management level
3/11/2014 87
89. Total Quality Management
A core definition of total quality management (TQM)
describes a management approach to long–term success
through customer satisfaction. In a TQM effort, all members
of an organization participate in improving processes,
products, services, and the culture in which they work.
Quality Conformance is level of effectiveness of
the design and production functions in effecting
the product manufacturing requirements and
process specifications while meeting process
control limits, product tolerances and production
3/11/2014 89
91. Production Management
• Production management means planning, organizing,
directing and controlling of production activities.
–Production Management deals with converting raw
materials into finished goods or products. It brings
together 6 M’s i.e. men. money, machines,
materials, methods and markets to satisfy the
wants of the people.
3/11/2014 91
92. Uses Of Cost Of Quality In Total Quality
Management
Prevention costs and appraisal costs have a direct
relationship with quality conformance.
»They increase as quality conformance increases.
Failure Costs have an inverse relationship with
quality conformance.
» As quality conformance increases failure costs should
decrease.
3/11/2014 92
93. Impact of TQM on costs.
prevention
Appraisal
Internal
Failure
Prevention
Appraisal
Internal
Failure
0
5
10
15
20
25
30
35
%ofsales An example from Xerox Corp.
Before TQM After TQM
3/11/2014 93
94. Uses Of Cost Of Quality In Production
Management
Major benefits of introducing Cost Of Quality concept in
Production management are as follows:
–It gives scope of continuous improvement.
–It shifts focus to customer making product more
market centric.
–It provides more problem solving options in
production/
–It builds better teamwork.
–Overall helps in keeping productivity to higher level.
3/11/2014 94
