A Project Report On PRODUCTIVITY IMPROVEMENT THROUGH TOTAL QUALITY MANAGEMENT Submitted in partial fulfilment of requirements For the award of the Degree of BACHELOR OF ENGINEERING IN PRODUCTION ENGINEERING By ABHINANDAN KUMAR Under the guidance of Prof. KAPIL DEV PRASAD Department of Production Engineering DEPARTMENT OF PRODUCTION ENGINEERING BIRLA INSTITUTE OF TECHNOLOGY, MESRA, RACHI 2014

1. A Project Report
On
PRODUCTIVITY IMPROVEMENT
THROUGH TOTAL QUALITY
MANAGEMENT
Submitted in partial fulfilment of requirements
For the award of the Degree of
BACHELOR OF ENGINEERING
IN
PRODUCTION ENGINEERING
By
ABHINANDAN KUMAR
Under the guidance of
Prof. KAPIL DEV PRASAD
Department of Production Engineering
DEPARTMENT OF PRODUCTION
ENGINEERING
BIRLA INSTITUTE OF TECHNOLOGY,
MESRA,RACHI

2. 2014
DECLARATION CERTIFICATE
This is to certify that the project entitled “PRODUCTIVITY
IMPROVEMENT THROUGH TOTAL QUALITY MANAGEMENT”
submitted by ABHINANDAN KUMAR in partial fulfilment for the
award of the degree of B.E in Production Engineering of Birla
Institute of Technology, Mesra, Rachi is the record of the student
own work carried out under my guidance and supervision.
No part of this project has been submitted to any other
university/institute for the award of this or any other degree.
DATE: Prof. KAPIL DEV PRASAD
(Department of Production Engineering)

3. CERTIFICATE OF APPROVAL
This project entitled “PRODUCTIVITY IMPROVEMENT
THROUGH TOTAL QUALITY MANAGEMENT” is here by
approved as a creditable engineering study carried out and
presented in a satisfactory manner to narrate its acceptance as
prerequisite to the degree for which it is being submitted.
(Internal Examiner)
(External Examiner)
Head of Department
Department of Production Engineering

4. ACKNOWLEDGMENT
Working on this project on “PRODUCTIVITY IMPROVEMENT
THROUGH TOTAL QUALITY MANAGEMENT” was a source of
immense knowledge to me. We would like to express my sincere
gratitude to Prof. Kapil Dev Prasad for his guidance and valuable
support thought out the course of this project work. We
acknowledge with a deep sense of gratitude, the encouragement
and inspiration received from our faculty members and
colleagues. We would also like to thank our parents for their love
and support.
ABHINANDAN KUMA

5. ABSTRACT
My project argues that the Total Quality Management concept and its
implementation is the critical need for the survival of industries. In the meantime,
lean manufacturing and constraint management could work together to improve
productivity, efficiency and quality. The article discusses the environment in which
businesses are operating, the effect of the total quality management on
productivity and presents some of the benefits that were realized by implementing
total quality management. Direct benefits from combining the concepts of lean
manufacturing and constrained management during the productivity improvement
process by using automation reduce production cycle times by more effectively
designing and scheduling the movement of robots. The ultimate goal is to satisfy
customer’s demand. My project discusses how constrained management
substantially increases production.

6. PRODUCTIVITY
IMPROVEMENT THROUGH
TOTAL QUALITY
MANAGEMENT

7. 1. How to increases productivity of an
Industry
2. General methods used in Industry to
increases productivity
3. What is TQM?
4. How to help TQM to improve productivity
of an Industry
5. Total Quality Management model and
productivity
6. Constraint management, Lean
production and the competitive advantage
Relationships
7. Conclusions
8. Bibliography:

8. INTRODUCTION
Intense global competition and
diminishing trade barriers are making
it more andmore difficult for
companies to maintain their market
share. Competition from companies
operating in different markets has
increased as advancements in
telecommunications and information
technology have broken down
traditional barriers to entry.
In a competitive environment, a
business must persuade a customer to
buy its products rather than those of
competitors at a price that is more
than its cost of production. A
rational customer, however, would like
to maximize value for his money.

9. Therefore, a successful producer must
enhance the total value of his
products so that the price is
acceptable to the customer while his
own costs are low enough to allow him
to make a profit.
Total quality management (TQM) is all
about fostering a culture that is
continuously oriented towards
increasing customer satisfaction while
minimizing the real cost of
production.
Increasing competition in the global
market necessitates that productivity
should not be considered as an
indicator of efficiency only; it must
also measure effectiveness. Yet the
distinction between the two is often
overlooked. For example, a company
that produces according to process
specifications may be using its
resources efficiently, but unless it
is producing what its customers want
it may not be using them effectively.
To be profitable, a company must judge
productivity and value from the
perspective of the customer, not from
the engineer.

10. Older manufacturing facilities are
often faced with productivity
challenges due to their inflexible
designs. The application of some of
the principles of lean manufacturing
is more restricted in such a setting.
Today, “lean” may no longer be
fashionable but its core principles
flow, value, pull, minimizing waste
etc.) Have become the paradigm for
many manufacturing (and service)
operations. In order to provide a
platform forestablishing the long-term
competitive impact of the lean
production model, the paperthen
develops a theoretical construct
explaining the mechanisms that
underpin sustainable competitive
advantage.
• Productivity is usually taken in
isolated scenario and cases.
• This usually lacks the holistic
system approach of a productivity
improvement project starting from its
vision till operational tasks.

11. • As such, the benefit gained at one
part of a system in time is eaten by
the sluggishness performance at
another part of the same system.
• The focus of discussion here is at
the holistic approach of
productivity; starting from:
Its basic concept,
Associated factors affecting it,
The TQM tools and techniques used
in productivity improvement program
and
Measurement in all types of
industries, social and academic
fields.
• Due to sever impact of productivity
on national economy, it is at the top
of national agenda of industrialized
countries to have good monitoring and
assessment system of performance of
individuals and organizations.
• Underdeveloped and developing
courtiers can take great advantage out
of productivity implementation as the
huge gap for productivity improvement
in these economies.

12. • Higher productivity can be linked to
national prosperity and socioeconomic
development and balancing system.
BASIC DEFINITION
STATISTICS
Statistics means a good amount of data
to obtain reliable results. The
science of statistics handles this
data in order to draw certain
conclusions. Statistical techniques
find extensive applications in quality
control, production planning and
control, business charts, linear
programming, etc.
QUALITY
Quality is a relative term and is
generally explained with reference to
the end use of the product.
A componentise said to be of good
quality if it works well in the
equipment for which it is meant.
Quality is thus defined as fitness for
purpose.

13. Plant Manager
Superintendents
Accounting Design and Production
Quality PlantProcurement Industrial
Development Engineering
Relations
Engineering
Assistant superintendent
of Quality
Department Head, Parts Department Head,
Product
Quality Control Quality Control
Quality General foreman Quality
General Foremen or
Enguneers Foreman Engineers
Foremen of
` of
Inspection
Inspection and
Testing Labs
Organization of an Inspection Department
In manufacturing, a measure of
excellence or a state of being
free from defects, deficiencies and si
gnificant variations. It is brought

14. about by strict
and consistent commitment to certain
standards that achieve uniformity of
a product in order to satisfy
specific customer or user requirements
. ISO 8402-
1986 standard defines quality as "the
totality
of features and characteristics of a
product or service
that bears its ability to satisfy
stated or implied needs." If
an automobile company finds a defect
in one of their cars and makes a
product recall,
customer reliability and
therefore production will decrease
because trust will be lost in the
car's quality.
CONTROL
Control is a system for measuring and
checking (inspecting) a phenomena.
It suggests
When to inspect
How often to inspect
How much to inspect.
In addition, it incorporates a
feedback mechanism which explores the

15. cause of poor quality and takes
corrective action.
What is TQM? : Basic
Concepts
Total Quality Management / TQM is
an integrative philosophy of
management for continuously improving
the quality of products and processes.
TQM is based on the premise that the
quality of products and processes is
the responsibility of everyone
involved with the creation or
consumption of the products or
services which are offered by an
organization, requiring the
involvement of management, workforce,
suppliers, and customers, to meet or
exceed customer expectations.
Cua, McKone, and Schroeder (2001)
identified nine common TQM practices:
1. cross-functional product design
2. process management
3. supplier quality management
4. customer involvement
5. information and feedback

16. 6. committed leadership
7. strategic planning
8. cross-functional training
9. employee involvement
 TQM is an integrated organization
apporoach in delighting customers
(both external and internal) by
meeting their expectaions on a
continuous basis through everyone
involved with the organisation
working on continuous improvement in
all product/processes along with
proper problem methodologhy.
TQM means activities involing
everyone in a company- Management and
workers in a totally integrated
effort toward improving performance
at every level.
This improved performance is directly
towards satisfying cross-functional
goal as Quality, Cost, Manpower
development, Quality of worklife etc.
There activities ultimately lead to
increased customer and Employee
satisfaction,

17. In short, the definition says
continuous meeting agreed customer
requirements at the lowest cost by
realising the potential of all
employees.”
TQM Principle
(i) Agree customer requirements
(ii) Understand customers/suppliers
(iii) Do the right things
(iv) Do thinngs right first time
(v) Measure for success
(vi) Continuous improvement is the
goal
(vii) Management must lead
(viii) Training is essential
(ix) Communicates as never before
TQM is a process of change in terms
of values, beliefs, style and
activity.
The concepts are essentially simple
to understand and yet are diffuclt
to implement.

18. Basic Principles of Total
Quality Management (TQM)
The basic principles for the Total
Quality Management (TQM) philosophy of
doing business are to satisfy the
customer, satisfy the supplier, and
continuously improve the business
processes.
Questions you may have include:
How do you satisfy the customer?
Why should you satisfy the
supplier?
What is continuous improvement?
This lesson will answer those
questions.
Satisfy the customer
The first and major TQM principle is
to satisfy the customer--the person
who pays for the product or service.
Customers want to get their money's
worth from a product or service they
purchase.

19. Users
If the user of the product is
different than the purchaser, then
both the user and customer must be
satisfied, although the person who
pays gets priority.
Company philosophy
A company that seeks to satisfy the
customer by providing them value for
what they buy and the quality they
expect will get more repeat business,
referral business, and reduced
complaints and service expenses.
Some top companies not only provide
quality products, but they also give
extra service to make their customers
feel important and valued.
Internal customers
Within a company, a worker provides a
product or service to his or her
supervisors. If the person has any
influence on the wages the worker
receives, that person can be thought
of as an internal customer. A worker
should have the mind-set of satisfying

20. internal customers in order to keep
his or her job and to get a raise or
promotion.
Chain of customers
Often in a company, there is a chain
of customers, -each improving a
product and passing it along until it
is finally sold to the external
customer. Each worker must not only
seek to satisfy the immediate internal
customer, but he or she must look up
the chain to try to satisfy the
ultimate customer.
Satisfy the supplier
A second TQM principle is to satisfy
the supplier, which is the person or
organization from whom you are
purchasing goods or services.
External suppliers
A company must look to satisfy their
external suppliers by providing them
with clear instructions and
requirements and then paying them
fairly and on time.

21. It is only in the company's best
interest that its suppliers provide it
with quality goods or services, if the
company hopes to provide quality goods
or services to its external customers.
Internal suppliers
A supervisor must try to keep his or
her workers happy and productive by
providing good task instructions, the
tools they need to do their job and
good working conditions. The
supervisor must also reward the
workers with praise and good pay.
Get better work
The reason to do this is to get more
productivity out of the workers, as
well as to keep the good workers. An
effective supervisor with a good team
of workers will certainly satisfy his
or her internal customers.
Empower workers
One area of satisfying the internal
suppler is by empowering the workers.
This means to allow them to make
decisions on things that they can

22. control. This not only takes the
burden off the supervisor, but it also
motivates these internal suppliers to
do better work.
Continuous improvement
The third principle of TQM is
continuous improvement. You can never
be satisfied with the method used,
because there always can be
improvements. Certainly, the
competition is improving, so it is
very necessary to strive to keep ahead
of the game.
Working smarter, not harder
Some companies have tried to improve
by making employees work harder. This
may be counter-productive, especially
if the process itself is flawed. For
example, trying to increase worker
output on a defective machine may
result in more defective parts.
Examining the source of problems and
delays and then improving them is what
is needed. Often the process has
bottlenecks that are the real cause of
the problem. These must be removed.

23. Worker suggestions
Workers are often a source of
continuous improvements. They can
provide suggestions on how to improve
a process and eliminate waste or
unnecessary work.
Quality methods
There are also many quality methods,
such as just-in-time production,
variability reduction, and poka-yoke
that can improve processes and reduce
waste.
The concept of TQM (Total Quality Management)
Total Quality Management is a management approach that originated in the 1950's and has steadily
become more popular since the early 1980's. Total Quality is a description of the culture, attitude and
organization of a company that strives to provide customers with products and services that satisfy their
needs. The culture requires quality in all aspects of the company's operations, with processes being done
right the first time and defects and waste eradicated from operations.
Total Quality Management, TQM, is a method by which management and employees can become
involved in the continuous improvement of the production of goods and services. It is a combination of
quality and management tools aimed at increasing business and reducing losses due to wasteful
practices.
Some of the companies who have implemented TQM include Ford Motor Company, Phillips
Semiconductor, SGL Carbon, Motorola and Toyota Motor Company.
TQM Defined
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 views an organization as a collection of processes. It maintains that organizations must strive to
continuously improve these processes by incorporating the knowledge and experiences of workers. The
simple objective of TQM is "Do the right things, right the first time, every time". TQM is infinitely variable
and adaptable. Although originally applied to manufacturing operations, and for a number of years only

24. used in that area, TQM is now becoming recognized as a generic management tool, just as applicable in
service and public sector organizations. There are a number of evolutionary strands, with different sectors
creating their own versions from the common ancestor. TQM is the foundation for activities, hich include:
Commitment by senior management and all employees
Meeting customer requirements
Reducing development cycle times
Just In Time/Demand Flow Manufacturing
Improvement teams
Reducing product and service costs
Systems to facilitate improvement
Line Management ownership
Employee involvement and empowerment
Recognition and celebration
Challenging quantified goals and benchmarking
Focus on processes / improvement plans
Specific incorporation in strategic planning
This shows that TQM must be practiced in all activities, by all personnel, in Manufacturing, Marketing,
Engineering, R&D, Sales, Purchasing, HR, etc.
The core of TQM is the customer-supplier interfaces, both externally and internally, and at each interface
lie a number of processes. This core must be surrounded by commitment to quality, communication of the

25. quality message, and recognition of the need to change the culture of the organization to create total
quality. These are the foundations of TQM, and they are supported by the key management functions of
people, processes and systems in the organization.