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Introduction to Quality Concepts and Total Quality Management
1. Chapter – 1:
Concept of Quality and
Total Quality Management
‘Quality’ is not an option but it is a
compulsion of EVERY business
organization today.
‘Quality’ is not an option but it is a
compulsion of EVERY business
organization today.
Prof. Dr. Shyamal Gomes // HRM // XISS 2012
2. What is Quality?
• Aristotle : Quality is not an art it is Habit
• J.M. Juran : Fitness for Use.
•
• W. Edward Deming : Continuous Improvement.
• Philip Crosby : “Conformance to specifications”
• Dr. Kaoru Ishikawa: Most economical, useful and
always satisfactory to the customer / audience.
• Broh: Quality is the degree of excellence at an acceptance
price and control of variability at an acceptable cost.
Prof. Dr. Shyamal Gomes // HRM // XISS 2012
3. Therefore
• Quality is a relative term.
• It is an attribute of a product or service that
fulfills or exceeds the human expectations.
These expectations are based on the
intended use and selling / service price.
• It is somewhat of an intangible character
based on perception.
Prof. Dr. Shyamal Gomes // HRM // XISS 2012
4. • Quality can be quantified as follows:
• Q=P/E
• Where, Q = Quality
P = Performance
E = Expectations
• If Q is greater than 1.0 then the
customer has a good feeling about the
product or service.
How can we measure Quality?
Prof. Dr. Shyamal Gomes // HRM // XISS 2012
5. Key Dimensions of QUALITY: (David A.Garvin-1988)
1. Conformance: Meeting the specifications of the customer.
2. Performance: Primary product functions such as clarity of voice
received in Mobile phone, Radio.
3. Features: Added functions (secondary functions) to a product such
as recording system in a television set.
4. Durability: Lifetime of the products, which include repairs.
5. Reliability: The probability of a product performing its intended duty
under stated conditions without failure for a given period of time.
6. Service: Ease of repair
7. Response: Human interface, such as courtesy of the service
personnel while registering a complaint from customer and while
repairing at the customer’s site.
8. Reputation: Customer’s perception about the product which can be
understood from a market research survey.
9. Aesthetics: The external finish given to a product to attract the
customer.
Prof. Dr. Shyamal Gomes // HRM // XISS 2012
7. Quality Planning (05) Quality
Control (07)
Quality
Improvement (08)
Establish quality
Goal
Identify
customer & their
needs
develop product
features
Develop process
features
Establish
process controls
and Transfer to
operation
Choose control
subjects
Choose units to
measure
Set goals
Create a sensor
Measure actual
Performance
Interpret the
difference
Take action on
the difference
Prove the need
Identify projects
Organize project
teams
Diagnose the
causes
Provide remedies
Deal with the
resistance
Change and
control
Hold the gains
The Universal Process for Managing QUALITY: 20 CONSTITUENTS
8. The Cost of Poor Quality (COPQ)
Prevention
Cost
Cost related – Market Research, designing, training and
perfuming acceptance sampling of raw materials, consultation
with suppliers, Six Sigma and others – first run entry
product
Appraisal
Cost
Costs associated with routine Measuring, evaluating,
inspection and auditing cost – during goods to
product
Internal
Failure Cost
Costs relate to the failure of the products to meet customer
specifications prior to its dispatch to the customer, like cost of
labour, material, machines per hour, scarp, rework, cost of
employee morale etc. – during goods to supply.
External
Failure
Costs incurred the defected product by the company after the
product has been delivered to the customers and failure of the
product take place at the customer’s end like cost of warranty ,
service charge, cost of loss of consumer good will etc.- after
delivering the product.
9. •• TQM is the art of managing the wholeTQM is the art of managing the whole
to achieve excellenceto achieve excellence.
• TQM is a Cultural Change
• TQM is an operational Phil. / a smart
attempt with primary attentions are
Customer/employee care, zero defect
and continuous Improvement.
What is Total Quality Management (TQM)?
10. What is TQM - JUSE?
The Japanese Union of scientists and
Engineers (JUSE) define that TQM is a
set of systematic activities carried out
by the entire organization to effectively
and efficiently achieve company
objectives so as to provide product’s
and services with a level of quality that
satisfies customers at the appropriate
time and price.
Prof. Dr. Shyamal Gomes // HRM // XISS 2012
11. Principles and Core values of TQM:
Principles Core Values
Delight the Customers Customer Satisfaction
Internal customers are real partner
Management by Fact All work is process oriented
Management commitment
People-based Management Team work
People make quality
Continuous Improvement Continuous improvement cycle
Prevention
12. Committed Management AND
Scientific Organizational
structure for support
Special focus on
Customer – both
internally and
externally
Effective
involvement of
Entire workforce
Continuous
improvement of the
business and production
Process
Effective
Performance
Measuring Process
Treating
Suppliers as
Partners
TQM
Concepts
Prof. Dr. Shyamal Gomes // HRM // XISS 2012
13. Quality Element Previous State On TQM
Definition Product Oriented Customer Oriented
Priorities Second to service and cost First among equals of
service and costs
Decisions Short term Long term
Emphasis Detection Prevention
Errors Operations System
Responsibility Q.C. Department Every one
Prob. Solver Managers Team
Procurement Price Life – cycle costs,
Partnership
Managers Role Plan, Assign, Control
and Enforce
Delegate, Coach,
Facilitate and
Mentoring
Cultural Difference
14. Obstacles to successful Implementation
According to Robert J.Masters, there are 8 common obstacles,
these are:
1. Improper planning
2. Lack of continuous training and education
3. Incompatible organizational structure and isolated
individual and departments
4. Ineffective measuring techniques and lack of access of
data and results
5. Paying inadequate attention to internal and external
customers
6. Inadequate use of empowerment and team work
7. Failure to continually improve
8.Inability to change organizational culture
Prof. Dr. Shyamal Gomes // HRM // XISS 2012
15. The Road – map to Obtain Total Quality:
“Organizational Analysis Model”
Top management commitment and involvement
Customer involvement
Design products for quality
Design production processes for quality
Control production processes for quality
Develop supplier partnerships
Customer service, distribution and installation
Building teams of empowered employees
Benchmarking and continuous improvement by using the
effective tools and techniques like TPM, SIX SIGMA,
Team Action through PDCA
Quality Audit
16. Benefits of TQM
• Holistic Development of an
Organization
• High productivity in lowest cost
• Competitive position in the market
• Congenial AND participatory work
environment
• Brand Image
Prof. Dr. Shyamal Gomes // HRM // XISS 2012
17. TQM in Indian Scenario
Step – 1
(1991)
The year 1991 (economic liberalization) brought about a lot of
changes in the Indian Economy and over all business
environment in our country.
Step – 2
(1992 -93)
Lots of Foreign MNCs started operations in India in the form of
Joint ventures (JV) like – Hero Honda, Maruti Suzuki, etc.
Step – 3
(1996 -97)
Professor Yasutosi Washio, has predicted that the quality of
Indian man will overtake that of Japan in 2013.
Step – 4
(1998 - 2003)
Mahindra’s Tractor unit is the first tractor unit in the world to
win DEMNG Award.
Step – 5
(2004-
onwards)
Indian industries even small industries interested to evolve
themselves under total quality management process by using
the tools and techniques like TPM (Total Productive
Maintenance) and other standards. Indian Industries started to
win TPM and Deming awards as a centre of business
excellence.
Prof. Dr. Shyamal Gomes // HRM // XISS 2012
18. Project Assignment ( Additional)
1.Browse the websites of any five companies
(Multinational) having an explicit mention of quality
in their mission, vision, values and or philosophy.
2.Or conduct an empirical survey of companies in
your state to find out the number of companies
having a strategic focus to Total Quality
Management.
Next : Introduction to Major Quality Gurus and their contributions
Prof. Dr. Shyamal Gomes // HRM // XISS 2012
