Unit – 1
Introduction
Quality
Quality is an attribute of a product or service that fulfils or exceeds human
expectation
As per ISO 9000:2000 Quality means “The degree to which a set of inherent
characteristics fulfils requirements”
Oxford dictionary – “Quality is the degree of excellence”
Fitness for use, fitness for purpose, customer satisfaction or conformance to
requirements
Q = P/E,
Where, Q- Quality, P – Performance, E – Expectation
Q >1, Satisfaction
Need/Importance of Quality
Provides competitive edge
Reduces cost due to return, rework & scrap
Increases profit, productivity, brand image, product image & company good
will
Generates satisfied customers
High employee morale & improves productivity
Evolution of Quality
1924 – W.A. Sehwart of Bell Telephone Laboratories – chart for control of
product variables
1942 – Statistical Quality Control
1946 – ASQ – American Society for Quality Control
1950 – Edward Deming – Lectures at Japan about quality
1954 – Joseph Juran – at Japan Management’s responsibility to achieve quality
1960 – Quality control circles
1970 – US managers went to Japan to learn quality
Continued
1980 – Concepts of TQM introduced
1990’s – Rankings based on customer satisfaction
ISO 9000 – world wide Quality Management System
ISO 14000 – Environmental Management System
Definition
TQM – Enhancement of traditional way of doing business
Proven technique to survive in world class competition
Total – made up of the whole
Quality – degree of excellence a product or service produces
Management – Act, art, or manner of handling, controlling, directing, etc.
The Range From Services to Products
Dimensions of Quality
Performance – primary product characteristics. Eg – Usage, gaming
Features – Secondary characteristics. Eg – Camera, etc
Conformance - meeting specific standards
Reliability – Consistency of performance over a period
Durability – Useful life including repair
Service – Resolution of problems, service
Response – Human to human interface
Aesthetics – Sensory characteristics – Exterior finish
Reputation - Past performance
Dimensions of Service Quality
Reliability
Responsiveness
Assurance
Empathy
Tangibles
Other Dimensions – Time, completeness, courtesy, consistency, accessibility,
etc.
Characteristics of TQM
Management philosophy – guide to change
Customer oriented management system
Starts at the top – needs management
commitment
Teamwork
Calls for planning
Continuous performance improvement at all
levels
Achieving results by process based approach
Recognizes customer – supplier relationship
Considers supplier as a partner
Emphasizes importance of measurement
Interlinks various sub systems of the
organization
Aims at meeting the dynamic needs of the
customer
Aims to instil ‘prevention not an inspection’
ethic
Basic concepts of TQM
1. Top management commitment
2. Focus on the customer
3. Effective involvement & utilization of entire workforce
4. Continuous improvement
5. Treating suppliers as partners
6. Establishing performance measures for the processes
TQM Framework
Principles of TQM
Customer requirements should be met
Agreed requirements from internal &
external customers
Everybody should be involved from all levels
Regular two way communication between all
Identifying training needs & relating them
with individual capabilities
Top management’s participation &
commitment
Culture of continuous improvement
Emphasis on purchase & supply management
Every job must add value
Eliminate waste & reduce total costs
Focus on prevention of problems
Culture of promoting creativity
Performance measures must
Focus on team work
Barriers to implement TQM
Lack of management commitment
Lack of faith & support to TQM among
management personnel
Inability to change organizational culture
Misunderstanding concepts of TQM
Improper planning
Lack of employee commitment
Lack of effective communication
Lack of continuous training & education
Lack of interest or incompetence of leaders
Ineffective measurement techniques
Non application of proper tools & techniques
Inadequate use of empowerment & team
work
Inadequate attention to internal & external
customers
Delay or non improvement of quality team’s
recommendation
Potential benefits of TQM
TANGIBLE BENEFITS
Improved product quality
Improved productivity
Reduced quality costs
Increased market & customers
Increased profitability
Reduced employee grievances
INTANGIBLE BENEFITS
Improved employee participation
Improved team work
Improved working relationships
Improved customer satisfaction
Improved communication
Enhancement of job interest
Enhanced problem solving
Better company image
Contribution of Quality
Gurus
DEMING, JURAN & CROSBY
W. Edward Deming
Deming – American senior quality guru
1928 – awarded doctorate in mathematical physics
1946 – expertise in SQC – was sent to Japan after WWII
1951 – after having impressed by his contribution, Japanese established the Deming Prize –
annually awarded to firms that distinguish themselves with QMS
1956 – awarded the Shewart medal by American Society for Quality Control
1960 – Awarded by the Japanese Emperor with the Second Order
Published more than 200 books on Quality
Deming’s Contributions
1. Deming’s 14 points on route to quality
2. Deming cycle or PDCA
3. Seven deadly diseases of Management
4. System of profound knowledge
Deming’s 14 Points
1. Create constancy of purpose towards improvement of product & service
2. Adopt the new philosophy
3. Cease the dependence on inspection to achieve quality
4. End the practice of rewarding business based on price tag
5. Improve constantly and forever the system of production & service
6. Institute training on the job
7. Institute leadership
Continued
8. Drive out fear
9. Break down barriers between departments
10. Eliminate slogans, exhortations and targets on workforce which ask for zero defects and
new levels of productivity
11. Eliminate work standards (quota) on the factory floor
12. Remove barriers to pride of workmanship
13. Institute a vigorous program of education & self improvement
14. Put everybody on the company to accomplish the transformation
2. Deming Cycle or PDCA Cycle
Systematic approach to problem solving by
Deming
Universal improvement method – idea to
constantly improve
Reduces the difference between customer
requirement & performance of the process
The cycle repeats itself
3. Seven Deadly diseases of Western
Management
1. Lack of consistency of purpose
2. Emphasis on short term profit
3. Reliance on performance appraisal & merits
4. Reliance on financial figures
5. Staff mobility
6. Excessive medical costs
7. Excessive legal costs
4. System of Profound Knowledge
According to Deming, the four ingredients of the system of profound knowledge necessary to
learn & practice are:
1. Appreciation for a system
2. Knowledge of statistical theory
3. Theory of knowledge
4. Knowledge of pshycology
Joseph M. Juran
Born in Romania (1904/0 and emigrated to America in 1912
1951 – “Quality Control Handbook”
Mid 1950 – Travelled to Japan to conduct seminar on planning, organizational issues,
management responsibility for quality, etc.
Authored hundreds of papers & books
Awarded 30 medals & fellowships worldwide including Japanese Second Order of the Sacred
Treasure by the Emperor
Juran’s Contributions
1. Internal Customer
2. Cost of Quality
3. Quality Triology
4. Juran’s 10 step for Quality Improvement
5. The Breakthrough concept
1. Internal Customer
End person alone is not the customer
Each person along the chain is a customer –
from product designer to final user
The person will be a process carrying out
transformation activity
Juran’s “three role model”
Each participant played 3 roles
2. Cost of Quality
Juran classified cost of quality into three classes:
i. Failure costs – scrap, rework, corrective actions, warranty claims, customer complaints, loss
of customer
ii. Appraisal costs – Inspection, compliance auditing & investigation
iii. Prevention costs – training, preventive audit, & process improvement implementation
3. Juran’s Quality Triology
Juran viewed quality as fitness for use
Divided quality planning into 3 parts:
i. Quality Planning
ii. Quality Control
iii. Quality Improvement
4. Juran’s 10 steps for Quality
Improvement
1. Build awareness of the need & opportunity
for improvement
2. Set goals for improvement
3. Organize to reach the goals
4. Provide training
5. Carry out projects to solve problems
6. Report Progress
7. Give recognition
8. Communicate results
9. Keep score
10. Maintain momentum by maintaining
annual improvement
5. The Breakthrough Concept
Juran’s breakthrough concerns with product/service life cycle
It is split into two areas:
i. Journey from symptom to cause
ii. Journey from cause to remedy
3. Philip Crosby
American quality guru
Best known for ‘Zero Defects’ & ‘Do it right first time’
Written many books – “Quality is free”, “Quality without tears”, “Lets talk Quality and Leading:
the art of becoming an Executive”
Founder of Carrer IV, Philip Crosby Associates Inc & Quality College
Crosby’s Contribution
1. Four absolutes of quality
2. 14 steps to quality management &
3. Crosby’s quality vaccine
1. Crosby’s Absolutes for Quality
Management
2. Crosby’s 14 Steps
Proposed 14 steps to quality improvement process:
1. Establish & ensure management commitment
2. Form quality improvement teams (QIT) for quality improvement process, planning &
administration
3. Establish Quality Measurements
4. Evaluate the cost of quality & explain its use as management tool to measure waste
5. Raise quality awareness among all employees
6. Take actions to correct problems identified in previous steps
7. Establish zero defects committee & program
Continued
8. Train supervisors & managers in their roles & responsibilities in quality improvement
process
9. Hold zero defects day to reaffirm management commitment
10. Encourage individuals & groups to set improvement goals
11. Obstacle reporting
12. Recognize & appreciate all participants
13. Establish Quality Council
14. Do it all over again to demonstrate that improvement is a never ending process
3. Crosby’s Quality Vaccine

TQM GE 2022 Unit – 1

  • 1.
  • 2.
    Quality Quality is anattribute of a product or service that fulfils or exceeds human expectation As per ISO 9000:2000 Quality means “The degree to which a set of inherent characteristics fulfils requirements” Oxford dictionary – “Quality is the degree of excellence” Fitness for use, fitness for purpose, customer satisfaction or conformance to requirements Q = P/E, Where, Q- Quality, P – Performance, E – Expectation Q >1, Satisfaction
  • 3.
    Need/Importance of Quality Providescompetitive edge Reduces cost due to return, rework & scrap Increases profit, productivity, brand image, product image & company good will Generates satisfied customers High employee morale & improves productivity
  • 4.
    Evolution of Quality 1924– W.A. Sehwart of Bell Telephone Laboratories – chart for control of product variables 1942 – Statistical Quality Control 1946 – ASQ – American Society for Quality Control 1950 – Edward Deming – Lectures at Japan about quality 1954 – Joseph Juran – at Japan Management’s responsibility to achieve quality 1960 – Quality control circles 1970 – US managers went to Japan to learn quality
  • 5.
    Continued 1980 – Conceptsof TQM introduced 1990’s – Rankings based on customer satisfaction ISO 9000 – world wide Quality Management System ISO 14000 – Environmental Management System
  • 6.
    Definition TQM – Enhancementof traditional way of doing business Proven technique to survive in world class competition Total – made up of the whole Quality – degree of excellence a product or service produces Management – Act, art, or manner of handling, controlling, directing, etc.
  • 8.
    The Range FromServices to Products
  • 9.
    Dimensions of Quality Performance– primary product characteristics. Eg – Usage, gaming Features – Secondary characteristics. Eg – Camera, etc Conformance - meeting specific standards Reliability – Consistency of performance over a period Durability – Useful life including repair Service – Resolution of problems, service Response – Human to human interface Aesthetics – Sensory characteristics – Exterior finish Reputation - Past performance
  • 10.
    Dimensions of ServiceQuality Reliability Responsiveness Assurance Empathy Tangibles Other Dimensions – Time, completeness, courtesy, consistency, accessibility, etc.
  • 11.
    Characteristics of TQM Managementphilosophy – guide to change Customer oriented management system Starts at the top – needs management commitment Teamwork Calls for planning Continuous performance improvement at all levels Achieving results by process based approach Recognizes customer – supplier relationship Considers supplier as a partner Emphasizes importance of measurement Interlinks various sub systems of the organization Aims at meeting the dynamic needs of the customer Aims to instil ‘prevention not an inspection’ ethic
  • 12.
    Basic concepts ofTQM 1. Top management commitment 2. Focus on the customer 3. Effective involvement & utilization of entire workforce 4. Continuous improvement 5. Treating suppliers as partners 6. Establishing performance measures for the processes
  • 13.
  • 16.
    Principles of TQM Customerrequirements should be met Agreed requirements from internal & external customers Everybody should be involved from all levels Regular two way communication between all Identifying training needs & relating them with individual capabilities Top management’s participation & commitment Culture of continuous improvement Emphasis on purchase & supply management Every job must add value Eliminate waste & reduce total costs Focus on prevention of problems Culture of promoting creativity Performance measures must Focus on team work
  • 17.
    Barriers to implementTQM Lack of management commitment Lack of faith & support to TQM among management personnel Inability to change organizational culture Misunderstanding concepts of TQM Improper planning Lack of employee commitment Lack of effective communication Lack of continuous training & education Lack of interest or incompetence of leaders Ineffective measurement techniques Non application of proper tools & techniques Inadequate use of empowerment & team work Inadequate attention to internal & external customers Delay or non improvement of quality team’s recommendation
  • 18.
    Potential benefits ofTQM TANGIBLE BENEFITS Improved product quality Improved productivity Reduced quality costs Increased market & customers Increased profitability Reduced employee grievances INTANGIBLE BENEFITS Improved employee participation Improved team work Improved working relationships Improved customer satisfaction Improved communication Enhancement of job interest Enhanced problem solving Better company image
  • 19.
  • 20.
    W. Edward Deming Deming– American senior quality guru 1928 – awarded doctorate in mathematical physics 1946 – expertise in SQC – was sent to Japan after WWII 1951 – after having impressed by his contribution, Japanese established the Deming Prize – annually awarded to firms that distinguish themselves with QMS 1956 – awarded the Shewart medal by American Society for Quality Control 1960 – Awarded by the Japanese Emperor with the Second Order Published more than 200 books on Quality
  • 21.
    Deming’s Contributions 1. Deming’s14 points on route to quality 2. Deming cycle or PDCA 3. Seven deadly diseases of Management 4. System of profound knowledge
  • 22.
    Deming’s 14 Points 1.Create constancy of purpose towards improvement of product & service 2. Adopt the new philosophy 3. Cease the dependence on inspection to achieve quality 4. End the practice of rewarding business based on price tag 5. Improve constantly and forever the system of production & service 6. Institute training on the job 7. Institute leadership
  • 23.
    Continued 8. Drive outfear 9. Break down barriers between departments 10. Eliminate slogans, exhortations and targets on workforce which ask for zero defects and new levels of productivity 11. Eliminate work standards (quota) on the factory floor 12. Remove barriers to pride of workmanship 13. Institute a vigorous program of education & self improvement 14. Put everybody on the company to accomplish the transformation
  • 24.
    2. Deming Cycleor PDCA Cycle Systematic approach to problem solving by Deming Universal improvement method – idea to constantly improve Reduces the difference between customer requirement & performance of the process The cycle repeats itself
  • 25.
    3. Seven Deadlydiseases of Western Management 1. Lack of consistency of purpose 2. Emphasis on short term profit 3. Reliance on performance appraisal & merits 4. Reliance on financial figures 5. Staff mobility 6. Excessive medical costs 7. Excessive legal costs
  • 26.
    4. System ofProfound Knowledge According to Deming, the four ingredients of the system of profound knowledge necessary to learn & practice are: 1. Appreciation for a system 2. Knowledge of statistical theory 3. Theory of knowledge 4. Knowledge of pshycology
  • 27.
    Joseph M. Juran Bornin Romania (1904/0 and emigrated to America in 1912 1951 – “Quality Control Handbook” Mid 1950 – Travelled to Japan to conduct seminar on planning, organizational issues, management responsibility for quality, etc. Authored hundreds of papers & books Awarded 30 medals & fellowships worldwide including Japanese Second Order of the Sacred Treasure by the Emperor
  • 28.
    Juran’s Contributions 1. InternalCustomer 2. Cost of Quality 3. Quality Triology 4. Juran’s 10 step for Quality Improvement 5. The Breakthrough concept
  • 29.
    1. Internal Customer Endperson alone is not the customer Each person along the chain is a customer – from product designer to final user The person will be a process carrying out transformation activity Juran’s “three role model” Each participant played 3 roles
  • 30.
    2. Cost ofQuality Juran classified cost of quality into three classes: i. Failure costs – scrap, rework, corrective actions, warranty claims, customer complaints, loss of customer ii. Appraisal costs – Inspection, compliance auditing & investigation iii. Prevention costs – training, preventive audit, & process improvement implementation
  • 31.
    3. Juran’s QualityTriology Juran viewed quality as fitness for use Divided quality planning into 3 parts: i. Quality Planning ii. Quality Control iii. Quality Improvement
  • 32.
    4. Juran’s 10steps for Quality Improvement 1. Build awareness of the need & opportunity for improvement 2. Set goals for improvement 3. Organize to reach the goals 4. Provide training 5. Carry out projects to solve problems 6. Report Progress 7. Give recognition 8. Communicate results 9. Keep score 10. Maintain momentum by maintaining annual improvement
  • 33.
    5. The BreakthroughConcept Juran’s breakthrough concerns with product/service life cycle It is split into two areas: i. Journey from symptom to cause ii. Journey from cause to remedy
  • 34.
    3. Philip Crosby Americanquality guru Best known for ‘Zero Defects’ & ‘Do it right first time’ Written many books – “Quality is free”, “Quality without tears”, “Lets talk Quality and Leading: the art of becoming an Executive” Founder of Carrer IV, Philip Crosby Associates Inc & Quality College
  • 35.
    Crosby’s Contribution 1. Fourabsolutes of quality 2. 14 steps to quality management & 3. Crosby’s quality vaccine
  • 36.
    1. Crosby’s Absolutesfor Quality Management
  • 37.
    2. Crosby’s 14Steps Proposed 14 steps to quality improvement process: 1. Establish & ensure management commitment 2. Form quality improvement teams (QIT) for quality improvement process, planning & administration 3. Establish Quality Measurements 4. Evaluate the cost of quality & explain its use as management tool to measure waste 5. Raise quality awareness among all employees 6. Take actions to correct problems identified in previous steps 7. Establish zero defects committee & program
  • 38.
    Continued 8. Train supervisors& managers in their roles & responsibilities in quality improvement process 9. Hold zero defects day to reaffirm management commitment 10. Encourage individuals & groups to set improvement goals 11. Obstacle reporting 12. Recognize & appreciate all participants 13. Establish Quality Council 14. Do it all over again to demonstrate that improvement is a never ending process
  • 39.