This document provides an overview of total quality management (TQM). It discusses key factors for quality from a customer's perspective such as price, technology, fashion, time orientation, contractual agreements, and ethics. The document emphasizes that customer satisfaction should be the highest priority for an organization and that continuous improvement is needed to provide high quality products and services. It also introduces some basic quality control tools including control charts, cause and effect diagrams, run charts, scatter diagrams, flowcharts, and Pareto charts that can help identify sources of variation and target areas for improvement.

1. An Overview
of
Total Quality Management (TQM)
Uncompromised value
Ultimate customer satisfaction

2. @Md. Shahiduzzaman
The Factors Included for Quality
From the customers point of view the factors included for quality are:
1. Price
Quality effected by price e.g. Some of the customers think for high price mean high quality
2. Technology
Fabric, seam strength, color fasteners, shrinkage etc.
3. Fashion
If it not fashionable garments sometime it does not meet customer requirements
4. Time orientation
This include durability e.g. Children garments should be durability than the ladies
fashionable garments
5. Contractural
This refer to the product guarantee
6. Ethical
This refer to honesty of the advertising and courtesy of the sales personnel

3. Every organization can improve the processes it utilizes to provide products and
services. Such improvement will result in more satisfied customers, lower
operating costs, faster product delivery, etc..
The question is how best to implement an effective, efficient, compliant quality
improvement system.
Starting from the basics.
“fitness for intended purpose”. In thinking of fitness for purpose you must
consider Quality, Cost and timely Delivery. If provided correctly – All add up to
customer satisfaction.
In order for an organization to compete you need satisfied customers. Better still
you want: delighted customers, or customers who say “WOW”.
With delighted customers, your organization will successfully compete and grow.
Without delighted customers, you organization will stagnate and decline.
Introduction.

4. 7-Basic QC Tools

5. Measurement system
analysis
Define Measure Analyze Improve Control
Measurement System Error:
Fig-1:Precise but not
accurate
Fig-2:Accurate but not
precise
Fig-3:Not accurate OR
precise
Fig-4:Precise &
accurate

6.  The AQL is the maximum percent defective that, for the purpose of sampling
inspection can be considered satisfactory as a process average.
 The AQL is a designated value of percent defective that the customer
indicates will be accepted most of the time by the acceptance sampling
procedures to be used.
AQL: Accepted quality level

7. Sample size code letters
Lot or Batch Size Sample size code letter
2 to 8 A
9 to 15 B
16 to 25 C
26 to 50 D
51 to 90 E
91 to 150 F
151 to 280 G
281 to 500 H
501 to 1200 J
1201 to 3200 K
3201 to 10000 L
10001 to 35000 M
AQL: Accepted quality level

8. Sampling Plans
Sample Size Code
Letter
Sample
Size Acceptable Quality Level
2.5 4 6.5 10
Ac Re Ac Re Ac Re Ac Re
A 2 0 1 0 1 0 1 1 2
B 3 0 1 0 1 0 1 1 2
C 5 0 1 0 1 0 1 1 2
D 8 0 1 1 2 1 2 2 3
E 13 1 2 1 2 2 3 3 4
F 20 1 2 2 3 3 4 5 6
G 32 2 3 3 4 5 6 7 8
H 50 3 4 5 6 7 8 10 11
J 80 5 6 7 8 10 11 14 15
K 125 7 8 10 11 14 15 21 22
L 200 10 11 14 15 21 22 21 22
M 315 14 15 21 22 21 22 21 22
AQL: Accepted quality level

9. What is Quality?
“The quality of a product or service is a
customer’s perception of the degree to
which the product or service meets his
or her expectations.”

10. Nature of Quality
• Dimensions of Quality
• Determinants of Quality
• Costs of Quality
• Commonly used defects Vs Defectives and QC vs QA

11. Ways in Which Quality Can
Improve Productivity
Sales Gains
– Improved response
– Higher Prices
– Improved reputation
Reduced Costs
– Increased productivity
– Lower rework and scrap
costs
– Lower warranty costs
Increased
Profits
Improved
Quality

12. Quality Principles
• Customer focus
• Continuous improvement
• Employee empowerment
• Benchmarking
• Just-in-time
• Tools of TQM
Yields: How to do what is important and to be
accomplished

13. • Operation
• Reliability & durability
• Conformance
• Serviceability
• Appearance
• Perceived quality
Quality
Dimensions of Quality for Goods

14. Importance of Quality
• Costs & market
share
• Company’s
reputation
• Product
liability
• International
implications
Increased
Profits
Lower Costs
Productivity
Rework/Scrap
Warranty
Market Gains
Reputation
Volume
Price
Improved
Quality

15. TQM is a people-focused management system
that aims at -
continual increase in customer satisfaction
at continually lowers real cost
Originated in Japanese industry in the 1950's
Become steadily more popular in the West
since the early 1980's.

16. Total Quality Management
(TQM)
• Better to produce item right the first time
than to try to inspect quality in
• Quality at the source - responsibility
shifted from quality control department to
workers

17. History of TQM
• Dr. Shewart began using statistical control
at the Bell Institute in 1930s
• Military standards developed in 1950s
• After World War II, Japanese Union of
Scientist and Engineers began consulting
with Deming
• Deming Prize introduced in Japan in 1951

18. History of TQM continued
• Quality assurance concept proposed in 1952
• Juran makes first trip to Japan in 1954
• Quality becomes Japan’s national slogan in 1956
• First quality circles created in 1957
• 10,000 quality circles by 1966
• 100,000 quality circles by 1977
• First U.S. quality circle 1974

19. HRD + OD
= TQM
Continuous
Improvement
Customer
Focus
Employee Involvement
(MOTIVATION)
Supplier
Teaming
Universal
Responsibility
Elements of TQM
Prevention
Not Detection

20. TQM Culture :
Cooperative culture has to be created by
management. Employees have to feel that they
are responsible for customer satisfaction . They
are not going to feel that they are excluded from
the development of vision , strategies, and plans .

21. Prevention not detection:
Quality scientist Deming believed that quality management should not
focus on merely sorting good product from bad.
Cause of variation should be identified
Traditional concept-

22. Quality scientist Deming’s opinion-
Deming highly criticized this traditional concept of quality.
First, Optimum qualities level totally ignore the
“customer’s expectation”
So, there is a great risk of losing the market,
which means less return and profit.
Second , Quality cost does not increase and infact decreases with
increases in quality level.

23. Fig. Total Quality Cost

24. Fig. Total Quality Cost
Introducing
quality program

25. Customer focus:
Customer satisfaction is seen as the company's highest
priority
The company will be successful if customers are satisfied.
TQM environment the voice of the customer is taken into
account to develop the product Quality.
QFD tool can be used to identify the customer needs & how
the needs can be satisfied.
Customer satisfaction should be measured with market
survey & statistical tool like ANOVA .

26. Customer Focus on Quality
Management
• Customer Expectations
–Quality is the extent to which a product or service
satisfies customer’s needs and expectations.
• Product quality
• Service quality
• Product and service quality combinations
– “The customer is the focal point of quality efforts.”
• Customer Feedback
–Customers are the eyes and ears of the business for
quality matters.

27. Employee Involvement:
A successful TQM environment requires a committed and well-trained
work force that participates fully in quality improvement activities.
Participation is reinforced by reward and recognition systems
On-going education & training of employees supports the drive for
quality.
Employees are encouraged to take more responsibility, communicate
more effectively, act creatively, and innovate.

28. Supplier teaming:
Develop long-term relationship with a few high quality
suppliers, rather than simply select the supplier with lower
initial cost.
Effective supplier development & evaluation system
should be introduced to get the less defective product

29. Continuous improvement:
Continuous improvement of all operations &
activities is at the heart of TQM .
It is recognized that customer satisfaction can only be
obtained by providing a high-quality product.
& continuous improvement of the quality of
the product is seen as the only way to maintain a high level of
customer satisfaction.
TQM recognises that product quality is the result of process
quality. As a result, there is a focus on continuous improvement
of the company's processes.

30. Flow of Activities Necessary to
Achieve Total Quality Management
• Organizational Practices
• Quality Principles
• Employee Fulfillment
• Customer Satisfaction

31. External Suppliers
Supplier development program
Impose precondition
Report -SPC & others
Supplier Evaluation
With AHP
Customers
Satisfaction
Analysis of
Variability
Improvement
Problem
Identify
Process
Identify
Variability
Source
Pareto Chart Flow chart
Fish bone analysis
(Brainstorming
& Quality circle)
Control chart
Stability &
Capability check
DOE Feed Back
ANOVA & Hypothesis testQFD
Design
(Cost Eng.,
DOE)
Customer
Requirements
TQM Model :

32. • Uses statistics & control charts to tell when to
adjust process
• Developed by Shewhart in 1920’s
• Involves
– Creating standards (upper & lower limits)
– Measuring sample output (e.g. mean wgt.)
– Taking corrective action (if necessary)
• Done while product is being produced
Statistical Process Control (SPC)

33. Cause and Effect Diagram
The cause and effect diagram is also called the fishbone chart or the
Ishikawa chart.
The source of cause of variation is searched -
Man, M/c, Method, Material , Environment
A variation

34. Tools for Quality Control
continued

35. Insufficient Time Spent Covering
Curriculum

36. Run Chart
The run chart shows the history and pattern of variation.
This tool is used at the beginning of the change process to see what the
problems are.
It is used at the end (check) part of the change process to see whether
the change has resulted in a permanent improvement.

37. Scatter Diagram
The scatter diagram shows the pattern of relationship between two
variables that are thought to be related.

38. Flowchart
The flowchart lists the order of activities. The circle symbol indicates
the beginning or end of the process. Helps to identify the targets for
improvements in the process .

39. Pareto Chart
The Pareto shows the distribution of items and arranges them from the
most frequent to the least frequent.
It shows where to put your initial effort to get the most gain.Because of
80/20 rule if we eliminate the 20% causes ,80% problem will be solved.

40. Histogram
The histogram is a bar chart showing distribution of variables.
This tool helps identify the cause of problems in a process by the shape
of the distribution as well as the width of the distribution.

41. Control Chart
The control chart is a line chart with control limits. It is based on the
work of Shewhart and Deming. By mathematically constructing
control limits at 3 standard deviations above and below the average,
one can determine what variation is due to normal ongoing causes
(common causes) and what variation is produced by unique events
(special causes). By eliminating the special causes first and then
reducing common causes, quality can be improved.

42. 1 42
Process Control Chart
Plot of Sample Data Over Time
0
20
40
60
80
1 5 9 13 17 21
Time
SampleValue
Sample
Value
UCL
Average
LCL

43. Control Chart

44. Patterns to Look for in
Control Charts

45. Produce Good
Provide Service
Stop Process
Yes
No
Assign.
Causes?Take Sample
Inspect Sample
Find Out Why
Create
Control Chart
Start
Statistical Process Control Steps

46. Process Capability
• Process capability is a production process’
ability to produce products within the
desired expectations of customers.
• The process capability index (PCI) is a way
of measuring that ability.

47. Process Capability Index (PCI)
PCI = (UL - LL) / (6s)
UL = allowed upper limit of the product
characteristic, based on customer expect.
LL = allowed lower limit of the product
characteristic, based on customer expect.
s = standard deviation of the product
characteristic from the production process
PCI > 1.00 Process is capable of meeting customer
expectations.
PCI < 1.00 Process is not capable.

48. Process Capability Index (PCI)
LL UL
PCI = 0.8
PCI = 1.0
PCI = 1.2
Process
is not
capable
Process
is
capable
Process
is quite
capable

49. Example: Process Capability
In order for a certain molded part to be considered
acceptable, the molding process must be conducted within
a limited range of temperature. The lower limit is 455o and
the upper limit is 465o.
Three molding machines being considered are A,
B, and C with standard deviations of sA = 2.50, sB = 1.25,
and sC = 1.75.
Which of these machines are capable of producing the
part in accordance with the temperature requirements?

50. Example: Process Capability
PCIA = (465 - 455) / (6(2.50)) = 10/15 = 0.67
PCIB = (465 - 455) / (6(1.25)) = 10/7.5 = 1.33
PCIC = (465 - 455) / (6(1.75)) = 10/10.5 = 0.95
Machine A is not close to being capable, with a
PCI well below 1.00. Machine B is more than
adequate with a PCI well above 1.00. Machine C
falls slightly short of being capable.

51. Successful Quality Management
Supportive
Organizational
Culture
Appropriate
Tools and
Techniques
Focus on
Customers
Essential Elements of
Successful Quality Management

52. Benchmarking and TQM
• Benchmarking
–The process of studying the products, services, and
practices of other firms and using the insights gained to
improve quality internally.
• Benchmarking
–The practice of establishing internal standards of
performance by looking to how world-class companies
run their businesses
Comparing an organization’s performance to
performance of other organizations.

53. Purposes for Benchmarking
• Comparing an organization’s performance
to the best organization’s performance
• Comparing an organization’s business
processes with similar processes
• Comparing products and services
• Identifying best practices to implement
• Projecting trends

54. Steps in Benchmarking
• Preparing for the study
– obtaining top management support
• Collecting data
– published data
– original research
• Using what was learned to improve
organizational performance

55. Benchmarking Goals
• Learning from experiences of others
• Determining how organization is
performing relative to the best
• Helping to prioritize improvement efforts
– developing stretch goals
– overcoming complacency within organization

56. Tools and Techniques of TQM
• Employee Participation
–Employee performance is a critical quality
variable.
–Quality circle
• A group of employees who meet regularly to discuss
quality-related problems.

57. Quality Circles
• Focus on all problems facing workers
• Composed of natural work groups
• Not limited to shop employees
• Usually spend couple hours per week on
company time analyzing problems

58. Tools and Techniques of TQM
• The Inspection Process
–The examination of a product to determine whether it
meets quality standards.
–Inspection standard
• A specification of a desired quality level and allowable
tolerances.
–Attribute inspection
• The determination of product acceptability based on
whether it will or will not work.
–Variable inspection
• The determination of product acceptability based on a
variable such as weight or length.

59. Statistical Methods of Quality
Control
• Acceptance Sampling
–The use of a random, representative portion to determine
the acceptability of an entire lot.
• Statistical Process Control
–The use of statistical methods
to assess quality during the
operations process.
• Control Chart
–A graphic illustration
of the limits used in
statistical process control.

60. International Certification for
Quality Management
• ISO 9000
–The standards governing international certification of a
firm’s quality management procedures.

61. • Six factors positively influence
customers’ perception of service
quality
1. Being on target
2. Care and Concern
3. Spontaneity
4. Problem Solving
5. Follow up
6. Recovery

62. Quality Gurus
• W. Edwards Deming
– Assisted Japan in improving productivity and
quality after World War II
– In 1951 Japan established Deming Prize
– US was slow in recognizing his contributions
– Introduced Japanese companies to the Plan-Do-
Check-Act (PDCA) cycle (developed by
Shewart)
– Developed 14 Points for managers

63. PDCA Cycle
2. DO
Try plan on
a test basis
1. PLAN
Identify im-
provements and
develop plan
3. CHECK
Evaluate plan
to see if it
works
4. ACT
Permanently
implement
improvements

64. Quality Gurus
• Philip B. Crosby
– Wrote Quality Is Free in 1979
– Company should have the goal of zero defects
– Cost of poor quality is greatly underestimated
– Traditional trade-off between costs of
improving quality and costs of poor quality is
erroneous

65. Philip B. Crosby
• Quality is conformance to requirements, not
elegance
• Quality problems do not exist, rather
organizations have functional problems
• Best to perform an activity right the first
time
• Zero defects only meaningful performance
measure

66. Quality Gurus
• Armand V. Feigenbaum
– Developed concept of total quality control (TQC)
– Responsibility for quality must rest with the persons
who do the work (quality at the source)
• Kaoru Ishikawa
– Wrote Guide to Quality Control in 1972
– Credited with the concept of quality circles
– Suggested the use of fishbone diagrams

67. Joseph Juran
• Quality Control Handbook (1951)
• Conformance to requirements.
• Quality Trilogy
– Quality Planning (preparing to meet Q goals)
– Quality Control (process during operations)
– Quality Improvement (achieving higher level
performance)
• Need to place more emphasis on planning and
improvement

68. Joseph Juran continued
• Organizations progress through four phases
– Minimize prevention and appraisal costs
– Appraisal costs increased
– Process control introduced increasing appraisal
costs but lowering internal and external failure
costs
– Prevention costs increased in effort to lower
total quality costs

69. Quality Gurus
• Joseph M. Juran
– Like Deming, discovered late by US companies
– Played early role in teaching Japan about quality
– Wrote Quality Control Handbook
• Genichi Taguchi
– Contends that constant adjustment of processes to
achieve product quality is not effective
– Instead, products should be designed to be robust
enough to handle process and field variation

70. Deming’s 14 Points
• 1."Create constancy of purpose towards improvement".
Replace short-term reaction with long-term planning.
2."Adopt the new philosophy". The implication is that
management should actually adopt his philosophy, rather
than merely expect the workforce to do so.
3."Cease dependence on inspection". If variation is
reduced, there is no need to inspect manufactured items for
defects, because there won't be any.
4."Move towards a single supplier for any one item."
Multiple suppliers mean variation between feed stocks.

71. 5."Improve constantly and forever". Constantly
strive to reduce variation.
6."Institute training on the job". If people are inadequately
trained, they will not all work the same way, and this will
introduce variation.
7."Institute leadership". Deming makes a distinction
between leadership and mere supervision. The latter is
quota- and target-based.
8."Drive out fear". Deming sees management by fear as
counter- productive in the long term, because it prevents
workers from acting in the organisation's best interests.

72. • 9."Break down barriers between departments".
Another idea central to TQM is the concept of the
'internal customer', that each department serves
not the management, but the other departments
that use its outputs.
10."Eliminate slogans". Another central TQM idea
is that it's not people who make most mistakes -
it's the process they are working within. Harassing
the workforce without improving the processes
they use is counter-productive.
11."Eliminate management by objectives".
Deming saw production targets as encouraging the
delivery of poor-quality goods.

73. • 12."Remove barriers to pride of
workmanship". Many of the other problems
outlined reduce worker satisfaction.
13."Institute education and self-
improvement".
14."The transformation is everyone's job".

74. • Malcolm Baldrige was Secretary of Commerce from 1981 until his death
in July 1987. Baldrige was a proponent of quality management as a key
to this country’s prosperity and long-term strength. He took a personal
interest in the quality improvement act that was eventually named after
him and helped draft one of the early versions. In recognition of his
contributions, Congress named the award in his honor.
• Congress established the award program in 1987 to recognize U.S.
organizations for their achievements in quality and performance and to
raise awareness about the importance of quality and performance
excellence as a competitive edge. The Baldrige Award is given by the
President of the United States to businesses—manufacturing and
service, small and large—and to education and health care organizations
that apply and are judged to be outstanding in seven areas: leadership,
strategic planning, customer and market focus, information and analysis,
human resource focus, process management, and business results.
What is the Malcolm Baldrige National Quality
Award?

75. The criteria for the Baldrige Award have played a major
role in achieving the goals established by Congress.
They now are accepted widely, not only in the United
States but also around the world, as the standard for
performance excellence. The criteria are designed to
help organizations enhance their competitiveness by
focusing on two goals:
delivering ever improving value to customers and
improving overall organizational performance.
Continue……..

76. • Leadership—Examines how senior executives guide the organization and how the
organization addresses its responsibilities to the public and practices good citizenship.
• Strategic planning—Examines how the organization sets strategic directions and how it
determines key action plans.
• Student, stakeholder, and market focus—Examines how the organization determines
requirements and expectations of customers and markets; builds relationships with
customers; and acquires, satisfies, and retains customers.
• Measurement, analysis, and knowledge management—Examines the management,
effective use, analysis, and improvement of data and information to support key organization
processes and the organization’s performance management system.
• Faculty and staff focus—Examines how the organization enables its workforce to develop
its full potential and how the workforce is aligned with the organization’s objectives.
• Process management—Examines aspects of how key production/delivery and support
processes are designed, managed, and improved.
• Organizational performance results—Examines the organization’s performance and
improvement in its key business areas: customer satisfaction, financial and marketplace
performance, human resources, supplier and partner performance, operational performance,
and governance and social responsibility. The category also examines how the organization
performs relative to competitors.
What are the Baldrige criteria?
The Baldrige performance excellence criteria are a framework that any
organization can use to improve overall performance.

77. Malcolm Baldrige National
Quality Award
• Awards given annually to US firms
• Nearly all states have quality award programs
styled after the Baldrige Award
• Criteria include
– Leadership
– Strategic planning
– Customer and market focus
– Information and analysis
– Human resource focus
– Process management
– Business results

78. The Deming Prize
• Awarded by the Union of Japanese Scientists and
Engineers
• Recognizes companies that have demonstrated
successful quality improvement programs
• All (not just Japanese) firms are eligible
• Four top-management activities recognized
– Senior management activities
– Customer satisfaction activity
– Employee involvement activities
– Training activity

79. Quality Function Deployment
(QFD)
• Determines what will satisfy the customer
• Translates those customer desires into the
target design

80. Taguchi Techniques
• Experimental design methods to improve
product & process design
– Identify key component & process variables
affecting product variation
• Taguchi Concepts
– Quality robustness
– Quality loss function
– Target specifications

81. • Ability to produce
products uniformly
regardless of
manufacturing
conditions
• Put robustness in
House of Quality
matrices besides
functionality © 1984-1994 T/Maker Co.
© 1995 Corel Corp.
Quality Robustness

82. • Shows social cost ($) of deviation from target
value
• Assumptions
– Most measurable quality characteristics (e.g., length,
weight) have a target value
– Deviations from target value are undesirable
• Equation: L = D2C
– L = Loss ($); D = Deviation; C = Cost
Quality Loss Function

83. Quality Loss FunctionFrequency
Target UpperLower
Target-oriented quality
yields more product in
the "best" category
Distribution of Specifications for Products Produced
Conformance-oriented
quality keeps products
within 3 standard
deviations
Loss
High Loss
Low Loss
Unacceptable
Poor
Fair
Good
Best

84. The specifications for the
diameter of a gear are
25.00 ± 0.25 mm.
If the diameter is out of
specification, the gear
must be scrapped at a cost
of $4.00. What is the loss
function?
© 1984-1994 T/Maker Co.
Quality Loss Function Example

85. • L = D2C = (X - Target)2C
– L = Loss ($); D = Deviation; C = Cost
• 4.00 = (25.25 - 25.00)2C
– Item scrapped if greater than 25.25
(USL = 25.00 + 0.25) with a cost of $4.00
• C = 4.00 / (25.25 - 25.00)2 = 64
• L = D2 • 64 = (X - 25.00)264
– Enter various X values to obtain L & plot
Quality Loss Function Solution

86. Freq.
X
Target USLLSL
A study found U.S. consumers preferred Sony TV’s made
in Japan to those made in the U.S. Both factories used
the same designs & specifications. The difference in
quality goals made the difference in consumer
preferences.
Japanese factory
(Target-oriented)
U.S. factory
(Conformance-
oriented)
Target Specification Example

87. Quality Loss Function; Distribution
of Products Produced
Low loss
High loss
Frequency
Lower Target Upper
Specification
Loss (to
producing
organization,
customer, and
society)
Quality Loss Function (a)
Unacceptable
Poor
Fair
Good
Best
Target-oriented
quality yields more
product in the “best”
category
Target-oriented quality
brings products toward
the target value
Conformance-oriented
quality keeps product
within three standard
deviations
Distribution of
specifications for product
produced (b)

88. • Principles of QA include :
• Planning
• Motivating
• Organizing
• Communicating
• Controlling and Maintaining Quality
Assurance

89. Standards and certification
• ISO make standards of internationally agreed good
practice and companies can use them to save save them
making up their own individual company standards
which do not have the same international acceptance as
ISO standards.
• Companies can apply for third party certification to
prove to their customers they are using the ISO
standards correctly
• 3rd party certification is a seven stage process starting
with application and finishing with surveillance visits