TQM 1

GE 6757 - TOTAL QUALITY MANAGEMENT
M.KARTHIKEYAN
ASSISTANT PROFESSOR
DEPARTMENT OF MECHANICAL ENGINEERING
AAA COLLEGE OF ENGINEERING & TECHNOLOGY, SIVAKASI
karthikeyan@aaacet.ac.in
8825676616
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M.KARTHIKEYAN AP/MECH AAACET
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SYLLABUS
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OBJECTIVE
To understand the concept of quality
OUTCOME
Develop an understanding of quality management
philosophies and Framework.
UNIT I INTRODUCTION
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OBJECTIVE
To learn the concepts and principles of TQM.
OUTCOME
Discuss the need of customer expectations, employee
involvement and Supplier partnership.
UNIT II TQM PRINCIPLES
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OBJECTIVE
To study the TQM tools and techniques.
OUTCOME
Analyze the TQM tools and Techniques to improve the product
and process Quality.
UNIT III TQM TOOLS AND TECHNIQUES I
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OBJECTIVE
To study the TQM tools and techniques.
OUTCOME
Apply modern tools to improve quality of the product.
UNIT IV TQM TOOLS AND TECHNIQUES II
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OBJECTIVE
To study the various quality standards.
OUTCOME
Describe ISO 9001, Environmental Management Standards and
ISO 14001 Certification process.
UNIT V QUALITY SYSTEMS
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UNIT 1 INTRODUCTION
UNIT 2 TQM PRINCIPLES
UNIT 3 & 4 TQM OLD & MODERN TOOLS
UNIT 5 VARIOUS STANDARDS
OVERVIEW
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T1: Dale H. Besterfiled, et at., "Total quality Management", Third
Edition, Pearson Education Asia, Indian Reprint, 2006.
T2: Evans, J. R., Dean J. W. Total quality management, organization
and strategy, Thomson, 2003. 399 p.
T3: Goetsch D. L., Davis S. B. Quality management. Introduction to
TQM for production, processing and services. New Jersey: Prentice
Hall, 2003
TEXT BOOKS
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R1: James R. Evans and William M. Lindsay, "The Management and
Control of Quality", 8th Edition, First Indian Edition, Cengage
Learning, 2012.
R2:. Suganthi.L and Anand Samuel, "Total Quality Management",
Prentice Hall (India) Pvt. Ltd., 2006.
R3: Janakiraman. B and Gopal .R.K., "Total Quality Management -
Text and Cases", Prentice Hall (India) Pvt. Ltd., 2006.
R4. Oakland G. F. Total Quality Management, Oxford, 1995.
REFERENCE BOOKS
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TITLE: TOTAL QUALITY MANAGEMENT
AUTHOR: Dr.V. JAYAKUMAR
PUBLICATION NAME: LAKSHMI PIUBLICATIONS)
LOCAL AUTHOR
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BASIC TERMS
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 Customer – who buy the products?
TYPES:
1] Internal Customer (within a company)
2] External Customer (outside a company)
 Consumer - who uses the products?
DIFFERENCE BETWEEN CONSUMER AND CUSTOMER
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PRODUCTION
 It is the measure of produced goods.
PRODUCTIVITY
 It is the measure of efficiency.
 Optimum usage of the resources
 Reducing the defects
DIFFERENCE BETWEEN PRODUCTION AND
PRODUCTIVITY
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CUSTOMER SATISFACTION:
 Fulfill the needs of the customer
CUSTOMER RETENTION:
 It is the process of retaining the existing customer.
DIFFERENCE BETWEEN CUSTOMER SATISFACTION
AND CUSTOMER RETENTION
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1. Introduction
2. Need for quality
3. Evolution of quality
4. Definitions of quality
5. Dimensions of product and service quality
6. Basic concepts of TQM
7. TQM Framework
8. Contributions of Deming, Juran and Crosby
9. Barriers to TQM
10. Quality statements
11. Customer focus
12. Customer orientation
13. Customer satisfaction
14. Customer complaints
15. Customer retention
16. Costs of quality
UNIT I - INTRODUCTION
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 To satisfy the customers.
 To survive in the global competitive market.
 To increase the productivity.
 To achieve zero defects.
 To increase the profit.
NEED FOR QUALITY
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1. Introduction
2. Need for quality
7. TQM Framework
9. Barriers to TQM
11. Customer focus
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TIME EVENTS
BEFORE 1900s Quality is an art.
1900s – Taylor Scientific approach to inspection.
1930s – shewart Control charts was introduced.
1940 – Deming Concepts of acceptance sampling was introduced.
1946 Founding of the ASQC American society for quality
control.
1962 Quality circles are started in japan.
1964 Ishikawa publishes book on quality management.
1970 JIT just in time concept was popularized.
1980 FMS flexible manufacturing system was introduced.
1990+ The management of quality has become a necessity
and it is recognized at all levels of management.
EVOLUTION OF QUALITY
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EVOLUTION OF QUALITY
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1. Introduction
2. Need for quality
7. TQM Framework
9. Barriers to TQM
11. Customer focus
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 Quality is defined as “fitness for use”- Juran
 QUALITY =
PERFORMANCE
EXPECTATIONS
DEFINITIONS OF QUALITY
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1. Introduction
2. Need for quality
7. TQM Framework
9. Barriers to TQM
11. Customer focus
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D/B PRODUCT & SERVICE
PRODUCT SERVICE
Tangible Intangible
Product are the physical objects. ‘Services’ is an activity of
performing work for others.
Goods can be returned. Services cannot be returned
back
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1. Performance
2. Features
3. Conformance
4. Reliability
5. Durability
6. Serviceability
7. Responsiveness
8. Aesthetics
9. Reputation
DIMENSIONS OF PRODUCT QUALITY
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Performance: It is the primary operating characteristics of the
product.
Ex: Audio quality of the mobile phone.
Features: It is the secondary characteristics of the product.
Ex: 4G facility in the mobile phone.
Conformance: Conformance means whether the product is meeting
the standards or not.
Ex: BS 3 automobiles are banned in India, due to the fact that it does
not meeting the BS 4 standards.
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Reliability: It is the probability of a product surviving over a specified
period of time.
Ex: Reliability of a mobile phone battery is six months.
Durability: It is the measure of product life.
Ex; Durability of a mobile phone may be 3 years.
Serviceability: Serviceability is the ability to service the product
quickly and easily.
Ex; Some mobile phones have service centers at all the places.
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Responsiveness: It is the measure of how well the manufacturer of the
product is able to adapt to the changing needs of the customer.
Ex: Nokia failed to respond the changing needs of the customer.
Aesthetics: It is the external appearance of the product.
Ex: mobile phones with slim in size; funky colors will attract more
customers.
Reputation: it means brand image of the product.
Ex: I phone have a brand image among the customers.
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1. Tangibles
2. Reliability
3. Responsiveness
4. Assurance
5. Empathy
6. Security
7. Access
8. Communication
9. Consistency
DIMENSIONS OF SERVICE QUALITY
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Tangibles: It refers to the equipment, tools, facilities used along with the
service.
Ex: A/C classroom, projector & Wi-Fi facility in the college.
Reliability: It refers to the ability of the service providers to keep their
promises.
Ex: 100% placement in the engineering colleges.
Responsiveness: It refers to help the customer during unexpected
situations.
Ex: Helping a student who falls sick.
Assurance: It is the ability of the service provider to create trust and
confidence among the customers.
Ex: Classes handled by PhD faculty will create trust among the students.
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Empathy: It refers to meeting the special requirements of the customer.
Ex: Cultural events, symposium and project expo conducted in the college.
Security: freedom from danger, risk or doubt.
Ex: Students studying in Anna University affiliated colleges have no risk.
Access: easy to contact the service provider.
Ex: Easy to approach the principal or management.
Communication: Educating and informing customers in language they can
understand.
Ex: Teaching the students in both English and Tamil.
Consistency: Are services delivered in the same manner for every
customer, and every time for the same customer?
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1. Introduction
2. Need for quality
7. TQM Framework
9. Barriers to TQM
11. Customer focus
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"TQM is a management approach of an organization, centered
on quality, based on the participation of all its members and
aiming at long-term success through customer satisfaction,
and benefits to all members of the organization and to
society."
TQM - DEFINITION
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NEW VS OLD CULTURES
OLD NEW [TQM]
Definition Product Customer
Priorities Service & Cost Quality
Decisions Short Long
Emphasis Detection Prevention
Problem
Solving
Managers Teams
Responsibility QC Every Body
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1. Top management commitment.
2. Focus on the customer.
3. Effective involvement and utilization of the entire work force.
4. Continuous improvement.
5. Treating suppliers as partners.
6. Establishing performance measures.
BASIC CONCEPTS OF TQM
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Top management commitment:
 Top management should participate in the total quality programs.
 They may show their commitment by organizing regular
management meetings, issuing magazines and newsletters.
Focus on the customer:
 Achieving both internal and external customer satisfaction is the
heart of TQM.
Effective involvement and utilization of the entire work force:
 It may be referred as principle of “employee involvement” or
“respect for people”.
 TQM is a team work.
 TQM believes that each person is responsible for the quality of his
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Continuous improvement:
 TQM is based on the quest for progress.
 TQM believes that there is always a better way of doing things.
 For this purpose various quality tools and techniques will be used.
Treating suppliers as partners:
 Since the suppliers influence the company’s product quality,
therefore a good partnering relationship should be developed
between the management and the suppliers.
Establishing performance measures:
 Performance measures such as uptime, productivity, sales
turnover, absenteeism, number of defective items should be
determined for each continuous quality improvement activity.
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1. Introduction
2. Need for quality
7. TQM Framework
9. Barriers to TQM
11. Customer focus
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TQM FRAMEWORK
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1. Introduction
2. Need for quality
7. TQM Framework
9. Barriers to TQM
11. Customer focus
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1. Create constancy of purpose for improvement of product and
service.
2. Adapt the new philosophy.
3. Cease dependence on inspection
4. End the practice of awarding business on the basis of price tag
alone.
5. Improve constantly and forever the system
6. Institute training
7. Institute leadership
8. Drive out fear, create trust, and create a climate for innovation
DEMING’S FOURTEEN POINTS ON ROUTE TO QUALITY.
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9. Breakdown barriers between departments and individuals
10. Eliminate exhortations for the work force
11. Eliminate numerical quotas for the workforce
12. Remove barriers that rob people of pride of workmanship
13. Encourage education and self-improvement for everyone
14. Take action to accomplish the transformation
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Create constancy of purpose for improvement of product and
service.
 Management must define its vision, mission and quality policy in
order to provide long term direction for the organization.
 Management must invest in innovation, training and research for
the improvement of product and service.
Adapt the new philosophy.
 New philosophy means, now a days we are not accepting the delays,
mistakes, defective materials and defective workmanship.
 Top management and everyone must learn and adopt the new
philosophy.
 It will reflect in our growth rate and the market share of the
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Cease dependence on inspection
 The quality, good or bad, is already in the product.
 Inspection does not improve the quality.
 So mass inspection is ineffective and costly.
 Instead of that statistical sampling techniques may be used.
End the practice of awarding business on the basis of price tag
alone.
 Management must stop awarding tender contracts to the suppliers
based on the price tag alone.
 Along with price other meaningful parameters such as quality and
delivery time should also be considered for selecting the supplier.
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Improve constantly and forever the system
 Processes and activity used in the organization must be improved,
then only quality and productivity will be improved.
 Continuous process improvement is the motto of TQM.
Institute training
 All employees should be trained in statistical tools for solving
quality problems.
Institute leadership
 Leadership means giving guidance to the employees to do their jobs
better.
 By instituting leadership, the employees can perform their jobs in a
better way.
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Drive out fear, create trust, and create a climate for innovation
 Management must encourage two way communications.
 All the employees must be motivated to ask questions, to report
problems and to express their ideas.
Breakdown barriers between departments and individuals
 People in different departments such as research, design,
manufacturing, sales administration must work in teams to solve the
problems.
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Eliminate exhortations for the work force
 Posters like ‘DO IT RIGHT THE FIRST TIME’ ‘ACHIEVE ZERO
DEFECTS’ ‘IMPROVE PRODUCTIVITY’ will create frustration among
the employees.
 Hence this kind of posters, pictures and slogans should be
eliminated
Eliminate numerical quotas for the workforce
 Fixing a numerical target like 500 units/shift, etc., may affect the
performance of the worker.
 Hence it should be eliminated.
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Remove barriers that rob people of pride of workmanship
 Barriers like performance appraisal must be removed from the
workplace.
 Because, performance appraisal will create competition and destroys
the team work.
Encourage education and self-improvement for everyone
 Management should encourage the employees to pursue higher
education and training.
 It will improve their knowledge and skills.
 Finally, it will be beneficial to the organization.
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Take action to accomplish the transformation
 Top management should take effort to implement the preceding 13
points.
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1. Introduction
2. Need for quality
7. TQM Framework
9. Barriers to TQM
11. Customer focus
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Juran’s contributions are as follows.,
1. Internal customer.
2. Cost of quality.
3. Quality trilogy.
4. Juran’s 10 steps for quality improvement.
5. The breakthrough concept.
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CONTRIBUTIONS OF JURAN

1. INTERNAL CUSTOMER
 Each person along the chain, from product designer to final user, is
a supplier and a customer.
2. COST OF QUALITY
 Failure costs: example- scrap, rework etc.,
 Appraisal costs: example- inspection, auditing etc.,
 Prevention costs: example- training.
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3. QUALITY TRILOGY.
1. Quality planning.
2. Quality control.
3. Quality improvement.
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QUALITY PLANNING.

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1. Build awareness of the need and 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 making annual improvement part of the
regular systems and processes of the company.
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QUALITY IMPROVEMENT

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4. JURAN’S 10 STEPS FOR QUALITY IMPROVEMENT.
1. Build awareness of the need and 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 making annual improvement part of the
regular systems and processes of the company.
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5. THE BREAKTHROUGH CONCEPT
The journey from “symptom to cause” and the journey from
“cause to remedy”.
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1. Introduction
2. Need for quality
7. TQM Framework
9. Barriers to TQM
11. Customer focus
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CROSBY’S 14 STEPS FOR QUALITY IMPROVEMENT
STEP 1: MANAGEMENT COMMITMENT
 Establish and ensure management commitment.
STEP 2: QUALITY IMPROVEMENT TEAM
 Form quality improvement teams (QITs) for quality improvement
process planning and administration.
STEP 3: QUALITY MEASUREMENT
 Establish Quality Measurements
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CONTRIBUTIONS OF CROSBY

STEP 4: COST OF QUALITY EVALUATION
• Evaluate the cost of quality and explain its use as a management
tool to measure waste.
STEP 5: QUALITY AWARENESS
• Raise quality awareness among all employees.
STEP 6: CORRECTIVE ACTION
• Take actions to correct problems identified through previous steps.
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STEP 7: ESTABLISH AN AD HOC COMMITTEE FOR THE ZERO
DEFECTS PROGRAM
 Establish a zero defects committee and programme.
STEP 8: SUPERVISOR TRAINING
 Train supervisors and managers on their role and responsibilities in
the quality improvement process.
STEP 9: ZERO DEFECTS DAY
 Hold a zero defects day to reaffirm management commitment.
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STEP 10: GOAL SETTING
 Encourage individual and groups to set improvement goals.
STEP 11: ERROR CAUSE REMOVAL
 Reporting the Obstacle faced by the employees while achieving the
goals to the management.
STEP 12: RECOGNITION
 Recognize and appreciate all participants.
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STEP 13: QUALITY COUNCILS
 Establish quality councils to discuss quality matters on a regular
basis.
STEP 14: DO IT OVER AGAIN
 Do it all over again to demonstrate that the improvement process
never ends.
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THE FOUR ABSOLUTES OF QUALITY OBSERVED BY CROSBY ARE.,
• Quality is conformance to requirements.
• The system for causing quality is preventive.
• The performance standard must be zero defects.
• Measurement of quality is the price of non-conformance.
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1. Introduction
2. Need for quality
7. TQM Framework
9. Barriers to TQM
11. Customer focus
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1. Lack of management commitment.
2. Lack of employees’ commitment.
3. Lack of effective communication.
4. Lack of faith in TQM activities.
5. Lack of support to TQM activities.
6. Lack of continuous training.
7. Lack of continuous education.
8. Difficult to change the traditional culture.
9. Misunderstanding about the concept of TQM.
10. Improper planning.
11. Improper application of tools and techniques.
12. Improper use of teamwork.
13. Delay in collecting data and information.
14. Inadequate attention to internal and external customers.
15. Financial problem.
BARRIERS TO TQM
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1. Introduction
2. Need for quality
7. TQM Framework
9. Barriers to TQM
11. Customer focus
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QUALITY STATEMENTS
Quality statements will give overall direction for achieving the total
quality culture.
TYPES
1. Vision statement:
2. Mission statement:
3. Quality Policy Statement:
QUALITY STATEMENTS
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VISION STATEMENT:
 It is a short declaration of what an organization aspires to
be in the future.
 It might be the ideal state.
 Example: “Bring inspiration and innovation to every athlete
in the world” - NIKE
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MISSION STATEMENT:
 It describes the function of the organization (usually in
paragraph).
 It provides a clear statement of purpose for employees,
customers and suppliers.
 Example: To accelerate the world’s transition to sustainable
energy – TESLA.
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QUALITY POLICY STATEMENT:
 It is a guide for everyone in the organization.
 It provides information about how they provide products
and service to the customers.
 Example: “we will maintain our comprehensive Global
Colgate Quality Standards in the design, manufacturing, and
distribution of our products as well as meet or exceed all
government requirements and consumer expectations
worldwide” – COLGATE.
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1. Introduction
2. Need for quality
7. TQM Framework
9. Barriers to TQM
11. Customer focus
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 Customer focus can be defined as the degree to which a firm
continuously satisfies customer needs and expectations. It also
includes.,
 Emphasis on customer-defined quality
 Emphasis on customer service
 Integration of customer information for new product development.
 Partnering with customer for the product development, R&D,
technology forecasting.
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CUSTOMER FOCUS

IMPORTANCE OF CUSTOMER FOCUS:
 The customers are the valuable assets for any organization.
 The success of an organization depends on the satisfied customer.
 The satisfied customer tends to purchase frequently and more.
 The manufacturing and service organization use customer
satisfaction as the measure of quality.
 Identifying the customer expectation is the key to satisfy the
customer.
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1. Introduction
2. Need for quality
7. TQM Framework
9. Barriers to TQM
11. Customer focus
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Customer orientation might include:
 developing a quality product appreciate by consumers;
 responding promptly and respectfully to consumer
complaints and queries;
 and dealing sensitively with community issues.
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CUSTOMER ORIENTATION

1. Introduction
2. Need for quality
7. TQM Framework
9. Barriers to TQM
11. Customer focus
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CUSTOMER SATISFACTION

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KANO MODEL OF CUSTOMER SATISFACTION

Kano model is a useful tool in understanding customer needs.
Kano model classifies customer needs into three categories.
1. Basic needs.
2. Performance needs.
3. Excitement needs.
BASIC NEEDS.
 Basic needs are the things that we expect to get without having to
ask for them.
 Example: at a lodge, we don’t ask for a bed, we expect it to be there.
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PERFORMANCE NEEDS.
 Performance needs are spoken by the customer and
considered when purchasing decisions are made.
 Example: customers would be willing to pay for a traditional
hygienic healthy food.
EXCITEMENT NEEDS.
 Excitement needs are unspoken.
 Excitement needs are beyond customer expectations.
 Example: jio offers.
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1. Introduction
2. Need for quality
7. TQM Framework
9. Barriers to TQM
11. Customer focus
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A customer complaint maybe defined as an expression of
dissatisfaction with a product/service, either orally or in writing, from
an internal or external customer.
CUSTOMER FEEDBACK COLLECTION TOOLS:
1. Comment cards.
2. Customer questionnaire.
3. Post-Transaction surveys.
4. Report cards.
5. Focus groups.
6. Social media.
7. Toll free numbers.
8. Customer visits.
9. Employee feedback.
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CUSTOMER COMPLAINTS

COMMENT CARDS.
 Comment cards are paper cards or forms with some questions to
collect customer feedback.
 Comment cards are generally attached to the warranty card.
 It will be filled by the customers during the service interaction.
CUSTOMER QUESTIONNAIRE.
 Surveys through email and pop-up.
 Pop-up is useful for collecting feedback after a customer has visited
company website.
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POST-TRANSACTION SURVEYS.
 Post transaction surveys are conducted immediately after a customer
service interaction.
 They are used for establishing customer service performance.
REPORT CARDS.
 It is similar to comment cards.
 The only difference is report cards are usually sent to each customer
on a quarterly basis.
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FOCUS GROUPS.
 Focus groups are small group discussions.
 Here preselected customers are giving their feedback about the
product/service.
SOCIAL MEDIA.
 Social media such as whatsapp, facebook, linkedin, blogs,
instagram, quora., can be used to collect customer feedback.
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TOLL FREE NUMBERS.
 Toll free numbers are an effective tool for receiving customer
feedback/complaint.
 It is the cheapest and most effective method.
CUSTOMER VISITS.
 Visits to the customers place is an another technique for gathering
information and feedback of the product.
EMPLOYEE FEEDBACK.
 Since Employee can offer insight into conditions that inhibit service
quality.
 So Employee feedback is also an important source of information.
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1. Introduction
2. Need for quality
7. TQM Framework
9. Barriers to TQM
11. Customer focus
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 Customer retention is the process of retaining the existing
customers.
 Customer retention is more powerful than customer satisfaction.
Because,
 Over 60% of an organization’s revenue will come from existing
customers.
 91% of the unhappy customers will never purchase goods and
services from you again.
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CUSTOMER RETENTION

1. Introduction
2. Need for quality
7. TQM Framework
9. Barriers to TQM
11. Customer focus
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COST OF QUALITY = Prevention costs + Appraisal costs + Internal
failure costs + External failure costs.
CATEGORIES:
I. COST OF GOOD QUALITY (or cost of conformance)
1. Prevention costs
2. Appraisal costs
II. COST OF POOR QUALITY (or cost of non-conformance)
1. Internal failure costs
2. External failure costs
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COSTS OF QUALITY (OR) ELEMENTS OF QUALITY
COSTS (OR) CATEGORIES OF QUALITY COSTS

I. COST OF GOOD QUALITY (or cost of conformance)
PREVENTION COSTS – costs utilized to prevent the defects.
Examples:
1. Cost of customer surveys,
2. Cost of design activities,
3. Cost of purchase order,
4. Cost of operations planning,
5. Cost of training.
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APPRAISAL COSTS – costs utilized to measure and control the
current production.
Examples:
1. Cost of receiving test samples.
2. Cost of testing the samples.
3. Cost of Maintenance of equipments.
4. Cost of Calibration of equipments.
5. Cost of Depreciation of equipments.
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II. COST OF POOR QUALITY (or cost of non-conformance)
INTERNAL FAILURE COSTS – costs involved due to the defects before
the product is shipped.
Examples:
1. Cost of rework.
2. Cost of Scrap.
3. Cost of Downtime.
4. Cost of Trouble shooting.
5. Cost of Reinspection and retesting.
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EXTERNAL FAILURE COSTS - costs involved due to the defects
after the product is shipped.
Examples:
1. Cost of processing complaints from customers.
2. Cost of servicing the defective items.
3. Cost of replacing the defective items.
4. Cost of guarantee and warranty claims.
5. Cost of Lost goodwill of customer.
SIVAKASI
97

TQM 1

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TQM 1