Fqm chapter 1-2-7

Introduction to Quality
Management
1

© Oxford University Press 2008. All rights
reserved.

 Quality has a longer history in out lives than
2
both cost and productivity.
 It is regarded as more „human‟ concept than
either cost or productivity.
 The problem of the producer is that the number
of customer may be too large, each one may have
a different perception of quality.
 If third party such as quality certification agency
has to decide about the quality of product or
service , its perception may be different from
customer and the producer.

reserved.

Definitions
3

 According to the Oxford Dictionary for the
Business World:
Quality is defined as the degree of excellence.

 Quality Guru J M Juran defined Quality as:
“Fitness for Purpose.”

 Quality Guru Philip Crosby defined Quality
as:
“Conformance to Specifications.”

reserved.

4

 „fitness for the purpose‟ means the
expectation or requirement of the customer.
 In all subsequent stages such as
development, engineering, production
, distribution, and after sales service, quality
is measured in terms of „conformance to
specifications‟.

reserved.

 According to Garvin(1984,1988), quality should
have different meanings in different context as
5
follows.
 Transcendent or innate excellence.

 Product –based or the quantity of a desirable
attribute which is present.
 User-based in the context of fitness for use.

 Manufacturing –based or conformance to
specification
 Value-based or satisfaction relative to price.

reserved.

Definitions
6

 Quality Control is defined as maintaining of
requisite standards in products or services.
 ISO 8402 defines Quality Control as:
“The operational techniques and activities that are
used to fulfill requirements for Quality.”
 ISO 8402 defines Quality Assurance as:
“All those planned and systematic actions necessary to
provide adequate confidence that a product or
service will satisfy given requirements for Quality.”

reserved.

 The documented quality system is sets
7

out, in a formal framework, the basis
of control for the critical activities of
an organization, which requires a
systematic approach, that is, quality
management.

reserved.

Definitions
8

Quality Guru A. V. Feigenbaum defines Total Quality
Control (TQC) as:

“Total Quality Control is an effective system for
integrating the quality-development, quality-
maintenance, and quality-improvement efforts of the
various groups in an organization so as to enable
marketing, engineering, production, and service at
the most economical levels which allow for full
customer satisfaction.”

reserved.

Tata Motors Crash test facility
9

reserved.

Various Aspects of Quality Management
10

reserved.

 Various techniques such as quality function
deployment, acceptance sampling, statistical
11
process control(SPC), Taguchi methods, and
service quality management have to be used to
control quality in every sphere of organizational
activity.
 Total Quality Management (TQM) principles is
thee reason why Japanese co‟s became world
leaders in quality products.
 Six Sigma is the quality philosophy to ensure a
reduction of the numbers of the defective products
to Zero.

reserved.

 It is requirement of ISO 9000 that an org. seeking
ISO certification has to conduct internal quality
audit on a regular basis 12which is called as first
party audit and can be conducted by the trained
employees of ISO.
 Second –party audit may be conducted by an
institutional customer of the org to ensure quality
standard mentioned in their contract .
 Two new international quality standard are gaining
ground. One is Capability Maturity Model (CMM)
developed by Carnegie Mellon University, USA, for
the software industry, and other is COPC-2000
developed by a consortium of major multinational
companies.

Various Dimensions of Quality
13

 Performance
 Feature
 Reliability
 Serviceability
 Durability
 Appearance
 Customer Service
 Safety.

14

reserved.

Costs of Quality
15

reserved.

Five stages of quality culture
16
 Dormant stage: No evident Interest, profitability
accepted, No external Threat
 Awakening stage: Competition increased, loss mkt
share, Japanese co’s woo the customers
 Groping stage: Started to follow
seminar, conference, magazines
 Action stage: Input of above trendy method
developed only marginal result.
 Maturity stage: Quality has become complete
natural as finance has been for years

TQM in India and Projection for the Future
17

reserved.

Strategic Quality Management (SQM)
18

Tummala & Tang (1996) define strategic
quality management as “a comprehensive
and strategic framework linking
profitability, business objectives, and
competitiveness to quality improvement
efforts with the aim of harnessing the
human, material and information
resources organization-wide in
continuously improving products or
services that will allow the delivery of
customer satisfaction.”

reserved.

Strategic Quality Management
19

 Juran‟s 1991 lessons for developing strategies for
world-class quality are:
 Implementation of Stretch goals and benchmarking
 Development of Necessary infrastructure
 Implementation of multifunctional process
 Demonstated leadership
 Incorporation of qulaity plans into corporate business palns

reserved.

 Joseph in 1999 developed an empirical survey
based 10 factor instruments for measuring TQM
20
implementation in manufacturing unit
 Organizational Commitment
 Human Resource Management
 Supplier Integration
 Quality Policy
 Product Design
 Role of Quality Department
 Quality Information system
 Technology Utilization
 Operating Procedure
 Training

reserved.

21

Phases of
SQM

reserved.

Hoshin Kanri, the Japanese SQM Model
22

ho - method
shin - shiny metal showing
direction
kanri - planning

Hoshin Kanri is a methodology for
setting strategic direction.
reserved.

Benchmarking
23

"Benchmarking is systematic and continuous
measurement process: a process of
continuously measuring and comparing an
organization’s business processes against
process leaders anywhere in the world to
gain information which will help the
organization to take action to improve its
performance"

reserved.

The Benchmarking Triangle
24

reserved.

Varieties of Banchmarking
25

 Internal
 External
 Competitive
 Industry
 Generic
 Process
 Performance
 Strategic

reserved.

The Benchmarking Template
26

reserved.

Xerox‟s Benchmarking Process Steps
27

reserved.

The European Quality Model
28

reserved.

The Balanced Scorecard
29

reserved.

Gap Analysis
30

reserved.

Total Quality Management

rights reserved.
© Oxford University Press 2008. All 31

TQM Defined
32

The Japanese Union of Scientists &
Engineers (JUSE) defines TQM as:-

Total Quality Management (TQM) is a set of
systematic activities carried out by the
entire organization to effectively and
efficiently achieve company objectives so as
to provide products and services with a
level of quality that satisfies customers, at
the appropriate time and price

reserved.

Overview of Total Quality Management
(TQM)
33

reserved.

W. Edwards Deming’s Contribution
34

 After the destructed in WW-II, Japanese needed
new technique to build devastated country and
economy fast.
 They invited Deming for his lecture on Statistical
Quality Control to Japanese Engineers and Senior
managers.
 His lectures principle now regarded as part of TQM
or Company-wide quality.

reserved.

Deming‟s PDCA Cycle
35

 Plan what is
needed
 Do it
 Check that it
works
 Act to correct any
problems or
improve
performance

reserved.

 The idea is to reduce the36
difference between the
requirement of the customer and the performance
of the process.
 It‟s a learning cycle for the constant improvement

reserved.

Deming‟s 14 Points
37
1. Consistency of Purpose is a must for continual
improvement of the product
2. Continuous change and innovation is a must
for survival
3. Quality cannot be achieved only by inspection
4. Lowest Price should not be the criteria for
selecting a supplier
5. Eliminate wastes in every functional area, not
only production
6. On the job training of employees
7. Attitude of supervisors & managers towards
workers should be that of a facilitator

reserved.

Deming‟s 14 Points
38
8. Encourage workers to give quality
improvement ideas without fear
9. Remove the barriers between departments &
individuals
10. Posters and slogans should be eliminated
11. Numerical targets and work standards may
affect quality
12. Remove obstacles in the good workmanship of
hourly workers to instill a sense of pride in
them.
13. Vigorous programs of retraining and education
of employees are must.
14. Top Management‟s commitment for ever-
improving quality is a must

reserved.

Deming‟s 7 Deadly Diseases
39
1. Lack of constancy of purpose to plan product
and service that will have a market and keep
the company in business, and provide jobs.
2. Emphasis on short term profits.
3. Evaluation of performance, merit rating, or
annual review.
4. Mobility of management; job hopping.
5. Management by use only of visible figures, with
little or no consideration of figures that are
unknown or unknowable.
6. Excessive medical costs.
7. Excessive costs of liability.

reserved.

Juran‟s „Quality Planning Road Map‟
40
1. Identify who are the customers.
2. Determine the needs of those customers.
3. Translate those needs into our language.
4. Develop a product that can respond to those
needs.
5. Optimize the product features so as to meet our
needs as well as customer needs.
6. Develop a process which is able to produce the
product.
7. Optimize the process.
8. Prove that the process can produce the product
under operating conditions.
9. Transfer the process to Operations.

reserved.

The Juran Triology Diagram
41

reserved.

The Spiral of Progress in Quality
42

reserved.

Philip B Crosby’s Contribution to TQM

 Crosby‟s name is perhaps best known in relation to
the concepts of „do it right first time‟ and „zero
defects‟.
 Zero defects does not mean that people never make
mistake, but company does not start out expecting
them to make mistake.
 His goal is to give all staff the training and the tool
of quality improvement , to apply basic percept of
prevention management .

Four Absolutes of Quality Management
44

1. Quality is defined as conformance to
requirements, not as 'goodness' nor
'elegance'.
2. The system for causing quality is
prevention, not appraisal.
3. The performance standard must be Zero
Defects, not 'that's close enough'.
4. The measurement of quality is the Price
of Non-conformance, not indices.

reserved.

Crosby‟s 14 Steps to Quality Improvement
45

1. Make it clear that management is committed to
quality.
2. Form quality improvement teams with senior
representatives from each department.
3. Measure processes to determine where current
and potential quality problems lie.
4. Evaluate the cost of quality and explain its use as
a management tool.
5. Raise the quality awareness and personal
concern of all employees.
6. Take actions to correct problems identified
through previous steps.

reserved.

46

7. Establish progress monitoring for the
improvement process.
8. Train supervisors to actively carry out
their part of the quality improvement
programme.
9. Hold a Zero Defects Day to let everyone
realize that there has been a change and
to reaffirm management commitment.
10. Encourage individuals to establish
improvement goals for themselves and
their groups.

reserved.

47

11. Encourage employees to communicate to
management the obstacles they face in
attaining their improvement goals.
12. Recognize and appreciate those who
participate.
13. Establish quality councils to
communicate on a regular basis.
14. Do it all over again to emphasize that the
quality improvement programme never
ends

reserved.

5 Characteristics to become an entirely successful
organization
48

 People routinely do things right the first time.
 Change is anticipated and used to advantage
 Growth is consistent and profitable
 New products and services appear when needed
 Everyone is happy to work there.

reserved.

“Quality Management Maturity Grid”
49

Maturity Stage 1: Uncertainty
Maturity Stage 2: Awakening
Maturity Stage 3: Enlightenment
Maturity Stage 4: Wisdom
Maturity Stage 5: Certainty

reserved.

Six Quality Measurement Categories in
“Quality Management Maturity Grid”
50

• Management understanding and attitude
• Quality organization status
• Problem handling
• Cost of quality as percentage of sales
• Quality improvement actions
• Summation of company quality posture

reserved.

Aims of Quality Circles
51

1. To contribute to the improvement and
development of the enterprise.
2. To respect human relations and build a
happy workshop offering job satisfaction.
3. To deploy human capabilities fully and
draw out infinite potential.

reserved.

Comparing the Quality Gurus
52

reserved.

Kaizen Defined
53

“Kai” in the Japanese means change, while
“Zen” means good (for the better), so that
Kaizen means “improvement”. Kaizen is a
sub-system of JIT and implies continuous
improvement in every sphere of activity.

reserved.

Comparing the Quality Gurus
54

reserved.

Savings through Kaizen
55

reserved.

Benefits of Maintenance Management
56

reserved.

Types of Maintenance Costs
57

reserved.

The Eight Pillars of Total Productive
Maintenance (TPM)
58

1. Jishu Hozen (JH) or autonomous
maintenance
2. Kobetsu Kaizen (KK) or individual
improvement
3. Planned maintenance (PM)
4. Hinshitsu Hozen or quality maintenance
5. Early management or development
management
6. Education & training
7. Safety, health & environment (SHE)
8. Office TPM

reserved.

Five S
59

1. seiri (sorting out)
2. seiton (systematic arrangement)
3. seiso (spic-n-span)
4. seiketsu (standardise)
5. shitsuke (self-discipline)

reserved.

Ishikawa‟s Contribution to TQM
60

 Professor Kaoru Ishikawa was the originator of
Quality Circle.
 He has authored two book i.e. Guide to Quality
Control and What is Total Quality Control: The
Japanese Way

reserved.

Ishikawa‟s Message and Techniques
61

 Ishikawa sees the cause and effect diagram as a
device to assist group or quality circles to the
construction of the diagrams.
 Other techniques Ishikawa has emphasized include
control charts, scatter diagrams, Binomial
probability paper, and sampling inspection

reserved.

Company-wide-quality control
62
 Ishikawa sees the company wide quality control
movement as implying that quality does no mean
only product but also post sales service and quality
of management, the company and the human
being. It has following effect.
 Product quality is improved and become uniform. Defects
are reduced.
 Reliability of goods is improved.
 Cost is reduced.

reserved.

 Quality of production is increased and it becomes possible to
make rational production schedules.
63
 Wasteful work and rework are reduced.
 Technique is established and improved.
 Expenses for inspection and testing are reduced.
 Contracts between vendor and vendee are rationalized
 The sales market is enlarged.
 Better relationship are established between departments.

reserved.

 False data reports are reduced.
 Discussion are carried out more freely and democratically.
64
 Meetings are operated more smoothly.
 Repairs and installation of equipments and facilities are
done more rationally.
 Human relations are improved.

reserved.

Quality Circle
 It is typically a voluntarily group of some 5-10
65

workers from the same workshops who meet
regularly and are led by a foreman, assistant
foreman, work leader, or one of the worker.
 The members off the circle have mastered
statistical quality control and related methods and
utilized them to achieve significant results in
quality improvement, cost reduction, productivity
and safety.

The Aim of Quality Circle
66

 To contribute to the improvement and development
of the enterprise.

 To respect human relation and build a happy
workshop offering job satisfaction.

 To deploy human capabilities fully and draw out
infinite potential.

reserved.

Six Sigma

SARVESH SONI/FQM/IE1/CH-7

 Six Sigma toolkit is composed of the DMAIC
process , the Six Sigma training hierarchy, and
poka-yoke. The DMAIC process in fact refers to
the steps involved in the implementation of Six
Sigma project define, measure, analyse , improve
and control.
 Poka-yoke are simple and inexpensive device used
in order to ensure that zero defects are produced
by the organisation.


 The DMAIC process in six sigma is aid by the seven
magnificent quality tools-Ishikawa‟s fishbone
diagram, flowcharts, checklists, control
charts, histogram, pareto chart and scatter diagram


Overview of Total Quality Management
(TQM)

The Six Sigma
Toolkit


Meaning of Six Sigma

 Let us assume the for the process of manufacturing
pencils the natural tolerance limits that is, (µ±3s), as
given in next figure.
 Thus, 99.73% of the pencil will have their diameter
within the specification limits, while the remaining
0.27% or 27 per 100 or 270000 per million pencils
will be defective. The standard deviation of the
population is „s‟.


 Therefore it gives training to every employee
regarding statistical techniques to measure every
critical factor responsible for variation.
 Then , steps are taken to improve the process and
reduce variation in the process.
 For example, workers are trained to reduce the
mistakes on their parts, processes are redesigned for
better performance, and maintenance of machine is
improved.


 Note that in below figure , there are 6 standard
deviation between the CL and USL or LSL. The
value(µ±6s) are now at the specification limits.
Now out of every 1 million pencils produced , only
0.002 pencils.
 This is Six Sigma quality level, meaning zero
defective per million opportunities. (DPMO).


Meaning of Six Sigma


Sigma/ Quality Level viz. Off-
Centering


Steps in Implementing Six Sigma

 Step 1 – Define: Define the priorities of the
customers with respect to quality
 Those attributes of the product are identified that are
considered most important by the customers in
evaluation the quality off the product. These attributes
are called critical to quality characteristics. (CTQ).
 The customer's perception about the quality attributes
are updated from time to time by conducting customer
surveys.


 Step 2 – Measure : Measure the processes
and the defects arising in the product due to
the process
- The important processes influencing the
CTQs are identified and performance
measurement techniques are established for
these processes.


 Step 3 – Analyze: Analyze the process to
determine the most likely causes of defects
 The key variables most likely to be responsible for
variation in the process are identified to find the
reason for generation of defects.


 Step 4 – Improve : Improve the performance
of the process and remove the causes of the
defects
 The specification limits of the key variable are fixed
and the system established for measuring the
deviation of the variable is validated.
 Improvisation in the process are done in order to
keep the variable within the specification limits.


 Step 5 – Control : Ensure that the
improvements are maintained over time
 The modified process is subjected to vigil at regular intervals of
times to ensure that the key variables do not show any
unacceptable variation (beyond the specification limits)
 There are certain situation where the project team members
may feel that a process needs to be replaced by a new process
rather than improving the exiting process.
 The demand of the customer with regard to quality cannot
satisfied by the existing process.


 At times , an organization may decide to launch a
new product or service to grab a new business
opportunity offered by the environment.
 In all such situation last two steps in the
DMAIC, namely, „improve‟, „ control‟ have to be
replaced by „design‟ and „verify‟ so that it becomes
DMADV.


Final and First-Pass Yield


Cost of Poor Quality (COPQ)

COPQ will generally include the following cost
components:

1) Cost of labor to fix the problem.
2) Cost of extra material used.
3) Cost of extra utilities
4) Cost of lost opportunity
a) Loss of sales/revenue (profit margin)
b) Potential loss of market share
c) Lower service level to customers


Defects per Million Opportunities (DPMO)


Contrasting Six Sigma and TQM

Six Sigma TQM
 Executive ownership  Self-directed work
 Business strategy teams
execution system  Quality initiative
 Truly cross functional  Largely within a single
 Focused training with function
verifiable return on  No mass training in
investment statistics and quality
 Business results with return on
oriented investment
 Quality oriented


Six Sigma Training Hierarchies

 Green belt
 He is trainedand experienced in using
Six Sigma tools and techniques.
 Black belt
 He is aspecialist in the use of Six Sigma
problem solving and prevention tools
and techniques. These techniques are
usually, but not necessarily, statistical or
numerical.
 They are having extensive experience in
their domain.

 Master black belt
 He has practiced as a Black Belt for at least
five years.
 He used to be full time practitioner in
Six-Sigma tools and has been mentor to at
least five successful black belt candidates.


The Seven Magnificent Quality Tools

1. Ishikawa‟s fish bone diagram
2. Flowcharts
3. Checklists
4. Pareto charts
5. Histogram
6. Scatter diagrams
7. Control Charts


1. Ishikawa‟s fish bone diagram

 Japanese quality GURU Kaoru Ishikawa is the
inventor of the diagram.
 It is used to represent the various causes of an
effect, a problem, or quality characteristics.
 This is useful to find out the root cause of a problem.


 There are two sets of general categories of main
causes used in the fish bone diagrams.
 3Ms and 1p, that is
Methods, Machinery, Material, People.
 4Ps that is, Policies, Procedures, People, and Plant.
 For each main cause , various sub-causes are identified and
represented .


Ishikawa‟s Fish Bone Diagram


Pareto chart
 Pareto Charts have been named after Alfred Pareto
(1848-1923).
 It is based upon 80:20 principle. It means 80% of
the quality problem caused by 20% of the causes.
 In the preparation of this charts, various causes
resulting in quality problem are identified and
arranged in the descending order of the magnitude
of defects they produce


Histogram

 This tool is often used during the „analyze‟ phase of
the DMAIC process.
 This shows the before and after situation of
implementing quality improvement measures.


Scatter Diagram

 It used to find out relationship between a cause and
effect.
 Ishikawa‟s Fishbone helps to find thee root cause of
an effect while scatter diagram help to identify the
kind and level of relationship. For ex…..


Poka-Yoke

 The Japanese word Poka-Yoke has been derived
from Yokeru (to avoid) Poka (inadvertent errors).

 Shigeo Shingo propounded the concept of “Zero
Quality Control” using Poka-Yoke devices leading
to “Defects = Zero”. This concept is synonymous
with terms like “Fail-safing”, “Fail-
proofing”, “Fool-proofing”, “Error-proofing” and
“100% inspection”.


Three Major Inspection Methods

1. Judgment Inspection
- This is the inspection of finished products so
that the defective products can be separated
from good ones before deliveries are made to
the customer.
2. Informative inspection
- here, the root cause of defects are investigated
and this information is passed to the relevant
processes for corrective action.
3. Source inspection


Zero Quality Control (ZQC)

1. Source Inspection: In this form of
inspection, factors causing defects are
inspected rather than the resulting
defects. If 100% inspection is adapted at
the source, the mistake can be avoided
completely before it becomes a defect.
2. Immediate action: Whenever a mistake is
detected, operations are stopped
immediately and resumed only upon
corrective action.


Quality Function Deployment


Origin of QFD

 Quality Function Deployment
(QFD) has its origins at
Bridgestone Tire Kurume
plant, where the Quality Chart
was used for the first time in
1966.
 In 1972, Mitsubishi applied the
QFD technique developed to its
present form by Dr. Yogi Akao, a
professor at Asahi SARVESH SONI/FQM/IE1/CH-7

QFD Defined
 The American Society for Quality Control
defines quality function deployment as a
"structured method in which customer
requirements are translated into
appropriate technical requirements for
each stage of product development and
production.
 The QFD process is often referred to as
listening to the voice of the customer"
(Bemowski, 1992).


 QFD is a method that determines customer
requirements, deploys quality improvement
resources to meet those requirements, and
measure customer satisfaction to determine
success.
 QFD is not only suitable for designing products but
for services as well.
 The word „function‟ in QFD refers to a function
analysis of the business process phases in order to
improve the quality of the product development
process itself


Application of QFD
(By Japanese Society of Quality Control)

 Seting design quality and planned quality
 Benchmarking competitive products
 New produt development that sets the company
apart from competitors
 Analyzing and accumulating market quality
information
 Communicating quality –related information to later
proceess


 Deploying design intent into manufacturing
 Identifying control points for the gemba(a
Japanese word that refers to the place where
source information can be learned)


Tangible & Intangible Benefits of QFD


Steps in
designing
the QFD
house of
quality SARVESH
SONI/FQM/IE1/CH-7

 STEP A: Conduct marketing research to determine
the „VOCs‟ i.e. customer‟s preference and then, place
the voices in part A of the house of Quality.
 By- Focus group, Personal-Telephonic
Interview, mail questionnaire.


Kano‟s Model
 It is possible the some of the root need of the
customer may not get revealed.
 Kano(1984) diagram useful to characterized
customer needs, which can help us gain profound
understanding of customer satisfaction.
 The X-axis represent the performance of the
product and Y-axis represent the level of
satisfaction attained by the customer.
 Each product feature affects customer satisfaction
in a different way.

SARVESH
SONI/FQM/IE1/CH-7

Kano‟s Model


 Must be attribute(basic Quality): Customer
take these for granted when fulfilled. However, if
the product does not meet this basic need
sufficiently, the customer may become very
dissatisfied.
 One dimensional attribute (expected
quality): These attributes result in customer
satisfaction when fulfilled and dissatisfaction when
not fulfilled in equal proportion with respect to the
performance of the product. The better these
attributes are the more customer likes the product


 Attractive attributes (exciting quality):
 The absence of attractive attributes does not cause
dissatisfaction because they are not expected.
 But presence of these attributes delights customer

 For example LG Golden Eye Television, which adjust the
brightness according to the light in the room so that harm to
the eyes can be prevented.


 STEP-B:
 Involves determination of the various technical equipments
with respect to the various „voices of customer‟ and placing
these in part B of the house of Quality.

• STEP-C:
 It involves the determination of the
relationship values between various „VOCs‟
and the technical requirement, and
representing these in part C of Quality House


• STEP-D:
 Thisstep involves the determination of
the correlation values between various
technical requirement and placing these
in part D of the quality house.
• STEP-E:
 Involves survey of the customer to
determine the importance rating of
various „VOCs‟ and placing these in part
E of quality house.


• STEP-F:
 Thisstep involves survey of the customer
to determine the rating of the company
and its main competitors with respect to
the various VOCs and placing them in
part F of quality house.
• STEP-G:
 Involves determining the rating of the
company and its main competitors with
respect to the various technical
requirements and placing them in Part G
of the quality House.

• STEP-H:
 Thisstep involves finding the absolute
and relative weights of the various
technical requirements and selecting the
technical requirements with high
weights.


Fqm chapter 1-2-7

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