Basic Concepts of Total Quality Management, Just-In-Time Technique, Quality Circle, Quality Assurance, Statistical Quality Control

1. Subject: Operations Management
Topics covered:
Basic concepts of
i. Total Quality Management (TQM)
ii. Just In Time (JIT)
iii. Quality Control (QC)
iv. Quality Assurance (QA)
v. Statistical Quality Control (SQC) By A. Raja

2. Total Quality Management
Definition:
• TQM is an approach to improve the effectiveness and
flexibilities of business as a whole.
• TQM is the integration of all functions and processes
within an organization in order to achieve continuous
improvement of the quality of goods and services.
• It is essentially a way of organizing and involving the
whole organization, every department, every activity
and every single person at every level.

3. Objectives of TQM:
• Meeting the customer requirements
• Continuous improvement of quality
• Acts as a key to organizational survival and growth
• Develops the relationship of openness and trust
among the at all levels in the organization.

4. Significance of TQM:
The importance of TQM lies in the fact that
• It encourages innovation
• Makes the organization adaptable to change
• Motivates people for better quality
• Integrates the business arising out of a common
purpose

5. Elements of TQM:
• Be customer focused
• Do it right the first time
• Constantly improve
• Educate and train people
• Measure the work
• Introduce team work
• Organize by process not by function

7. JUST-IN-TIME(JIT)
JUST-IN-TIME: It is a manufacturing system for
manufacturing processes that helps in achieving high-
volume production using the minimal inventories.
The system eliminates the inventory of raw materials, work-
in-progress, and finished goods by making them available
as and when required.

8. History of JIT:
•Evolved in Japan after World War-II, as a result of their
diminishing market share in the auto industry.
•Toyota Motor Company - The Birth place of the JIT
philosophy under Taiichi Ohno.
•The JIT concepts states “nothing is produced until it is
required.”
•Finished goods are assembled just before they are sold.
•Sub-assembles are just made before the products are
assembled.
•Components are fabricated just before sub assembles are
made.

11. ADVANTAGES:
•High Quality.
•Flexibility.
•Reduced setup times.
•Reduced need of indirect labor.
•Less Waste.
•Low warehouse cost.

12. DISADVANTAGES:
•Time consuming.
•No spare to meet unexpected order.
•Supply halts: if products doesn’t reach on time.
•High risk factor.

13. Quality circles
Definition of Quality Circle:
“Quality circle is a small group of employees who
work in same work area or doing similar type of
work who voluntarily meet regularly for about an
hour every week to identify, analyze and resolve
work related problems, leading to improve, in their
total performance and enrichment of their work
life”.

14. Meaning of Quality Circle:
 A Quality circle is a completely voluntary group of
6 to 8 workers, Who meet regularly during company
time once every fortnight or every month.
 Under the leadership of a trained foreman to
examine work-related problems that affect the
quality of output and recommend to the
management possible solution to those problem.

15.  The foreman for this purpose are trained in advance
in basic statistical and problem solving techniques
as well as in handling groups.
 These groups are formed solely from the worker’s
desire to do something creative.
 No-body is paid to join or forced to join or no
penalized for not taking part.
 Once they are formed, sets terms of reference, select
the problem and present the recommendation for it.

16. Characteristics of QC:
 It is voluntary, participative
 It is a group activity
 It has management support
 It involves task performance
 It is not a forum to discuss demands or grievances

17. Objectives of QC:
 To make use of brain power of employees also
addition to hands and feet.
 It improve quality of the organization.
 To improve mutual trust between management and
employees.
 To promote participative culture that is the essence
of this concept.

18. Benefits of QC:
 Improve the quality.
 Cost reduction.
 Increase productivity.
 Better human relations.
 Working without tension.
 Increase safety.
 Development of participative culture.
 Better communication.

19. Limitations of QC:
 Lack of management support.
 Time required to implement.
 Failure to hire consultants.
 Improper composition of quality circles.

20. QUALITY :
According to PETER DRUCKER “Quality in a product
is what the supplier puts in, It is what the customer gets out
and willing to pay for.”
According to ISO 9000, “Degree to which a set of
inherent characteristics fulfills requirements. The standard
defines REQUIREMENT as need or expectation.
QUALITY ASSURANCE

21. QUALITY ASSURANCE :-
• It refers to the customers that the products, parts, components,
tools etc contain specified characteristics and are fit for intended
use.
• It is a concept which is similar to Financial Audit.
•It is a responsibility of every department.
•It is a process of verification of a product from raw material
stage to the end product stage.

23. FORMS OF QUALITY ASSURANCE
1.) QUALITY AUDIT :
It is an independent review conducted to compare some
aspect of quality performance with a standard for that
performance.
It provides an unbiased picture of performance.
USES :
• Products are fit for use and safe for the user.
• Standards defined by the government agencies, Industry
associations are being followed or not can be known.
• Deficiencies are identified and the appropriate personnel are
alerted.

24. 2) QUALITY SURVEYS :
• It gives a broader view of the quality assurance to the upper
management.
• It is also called as “QUALITY SERVICE”, or “COMPANY
WIDE AUDIT”.
USES :
• Analysis of users situation with respect to cost, convenience etc
over the life of the product.
• Challenge to top management itself with respect to policies,
goals, premises and axiomatic beliefs.
• Opportunities for reducing costs of poor quality.
• Employee perception on quality of a product.

25. 3) PRODUCT AUDIT :
• It is an independent evaluation of product quality to
determine the fitness for use and conformance to
specification.
• It takes place after inspections have taken place.
USES :
• Estimating the quality level as delivered to customers.
• Evaluating the effectiveness of the inspection decisions in
determining conformance to specifications.
• Providing additional assurance beyond routine inspection
activities.

26. Statistical quality control (SQC)
The application of statistical techniques to measure
and evaluate the quality of a product, service, or
process.
Two basic categories:
 Statistical process control (SPC)
 Acceptance Sampling

27. 1.Statistical Process Control (SPC)
 The application of statistical techniques to
determine whether a process is functioning as
desired.
 Quality of the products is controlled while the
products are in the process of production.
 Secured with the technique of control charts.
Monitors specified quality characteristics of a
product or service so as:
To detect whether the process has changed
in a way that will affect product quality and
To measure the current quality of products
or services.

28. 2.Acceptance Sampling
 The application of statistical techniques to determine
whether a population of items should be accepted or
rejected based on inspection of a sample of those
items.
 To accept or reject a batch of items.
 Frequently used to test incoming materials from
suppliers or other parts of the organization prior to
entry into the production process.
 Measures number of defects in a sample. Based on
the number of defects in the sample the batch is
either accepted or rejected.

29. THANK YOU